The analysis of oil, gas, and coal coal activities affecting socio-economic welfare: case of Indonesia

• Main Authors: Azzahrah, Shofie, Sakinah, Mutiara, Yudyantoro, Muhammad Prayudya Dewoyono
• Format: Conference or Workshop Item
• Language: English
• Published: 2019
• Subjects: HC Economic History and Conditions
• Online Access: http://repo.uum.edu.my/26662/1/ZAWED%202019%20308%20334.pdf; http://repo.uum.edu.my/26662/

Indonesia is a country that is rich in natural resources, such as oil, gas, and coal. The three sectors of that mining are also highly demanded in this country. It is the reason why there are many companies want to do mining activities. Law of The Republic of Indonesia No.4/2009 concerning Mineral and Coal Mining has stipulated that natural resource wealth must be optimized for the greatest benefit of the people's prosperity, in line with the substance of Article 33 of the 1945 Constitution. Related to this, Islam also regulates everything aspects of human life, one of which is how our ethics towards the environment such as maintaining resources to remain sustainable by utilizing effectively and efficiently and not causing damage on this earth. Although the government has the right to regulate the company to do Environmental Impact Assessment (AMDAL) and Corporate Social Responsibility (CSR), the control is not strict enough for the mining companies to do the activities. Therefore, this study aims to find out what are the effects of increasing the mining companies and mining production of oil, gas, and coal to the socio-economic welfare in the province of Indonesia. The data that we use is The National Socio-Economic Survey (SUSENAS) 2016 and 2017 by The Ordinary Least Square Regression Method which the dummy already weighted and become a normal numeric number for the dependent variable. This paper contributes to the sustainable development program not only in Indonesia but also can be used as a reference in another country.