CRITICAL JURNAL : The Natural Resource Curse

By Muhammad Yasin Izhharul Haq

The Natural Resource Curse or the curse of natural resources is a condition of a country that
has abundant resources it has growth and low economic development. This is contrary to other
countries that do not have abundant resources but can have a high economic growth. Natural
resources here are usually non-renewable resources or natural resources that can not be updated.
Why the vast resources can be a curse? Pointed out that countries with abundant resources
inevitably tend to exploit the wealth, but the problem is the country's abundant resources are
usually sold in the form of raw materials (raws materials) that has the added value is not great
sources of state revenue. Actually, this behavior can be detrimental to the country as raw material
prices are usually cheaper than the price of finished goods and the export of raw materials would
only benefit other countries that are able to process them into items which have more value added.
So that when the resale will be more beneficial for the country. In addition, by exporting raw
materials typically the country will depend on the income of the abundant resource. It would
certainly be dangerous because the resources of non-renewable one point would run out.
So it will hamper the economy someday. The phenomenon of the resource curse is also
known as the Dutch Disease or Dutch disease because it never happens in real curse in the
Netherlands based on the expression of The Economist issued in 1997. On November 26, 1997, The
Economist stated that the discovery of large natural gas in 1959 said as Dutch Disease. The concept
of "Dutch disease" shows the relationship between the increase in exploitation of natural resources
by a decrease in other sectors. Along with the increase in exports, the country's currency will terappreciation but will weaken other sectors that are not contiguous or in this case be regarded as
industry and manufacturing. Thus the Dutch Disease phenomenon can be regarded as one of the
causes of de-industrialization. In addition to the Netherlands, the phenomenon of the resource
curse is also relevant in other countries, many developing countries. Many countries in Africa such as
Angola, Nigeria, Sudan and the Congo is rich in natural resources such as petroleum, gemstones and
other minerals. However, the country has a low per capita income and quality of life were no better
than countries with few natural resources. Then other countries as producers of abundant natural
resources such as Norway, Indonesia, Bosnia, and several Latin American countries also allegedly
suffered from the effects of resource curse . Actually not yet known for certain whether Indonesia

affected resource curse because the debate is still going on until now. Most people would agree that
Indonesia suffered accusations of resource curse and partly ooptimis that Indonesia can still be said
to be of "Dutch disease". Indeed, as a country rich in natural resources are considered once that
massive operations directly occur continuously without giving any meaningful development. Opinion
who wakes up and support this set of scenery that can be seen clearly from a particular region of the
country. Papua, for example, with a great wealth will be mine precious stones would have a local
development level is much lower than other areas. The gap between the area questioned the
contribution of the extractive sector (raw materials / raw) which are constantly being made.
The focus of Indonesia that has been exporting the quantity of raw materials sector is often
considered as being inhibit the progress of industry and underdeveloped.

But it seems the

government is now beginning to be wary of the high proportion of exports of raw materials. One of
them is reflected in the publication of the Law on Mineral and Coal Mining (Mining Law) that protect
the goods from the mining and minerals sector in order to increase the value added of the country.
Mining companies are required to process the mines in the country as well ban the export of raw
materials (raw materials). The goal is to increase revenues, create jobs and improve the welfare of
society. This law is supported by the publication of the Regulation of the Minister of Energy and
Mineral Resources No. 7 of 2012 on Added Value Through Mineral Processing and Refining Activities
Minerals with the same purpose. Although only in terms of commodities and coal but referable to
welcome a new era in the management of natural resources, especially raw materials.
In addition to this opinion, for some people to believe that Indonesia has not experienced what is
called as the Dutch disease. January Priewe in class presentation in Berlin said the case of Indonesia
that growth tends to be slow, there are special conditions for the issuing of negra who develop
resource curse. Boediono said that this is because of the manufacturing industry in Indonesia is still a
sector that accounts for the largest share in the gross domestic product (GDP) in Indonesia. This
proves that industrialization in Indonesia is still ongoing. In Indonesia in 2004-2009 GDP data shows
that the growth of income per sector of the extractive sector (raw material) is much lower compared
to other sectors.
To resolve the allegations and indications given in Indonesia, the government became very
central role in managing the economic order of the country. Natural wealth and poverty gap and the
contrast is very poor, creating a portrait of the country in the eyes of the world. The issuance of the
Mining Law is one of the first steps in dealing with the export of excess raw materials. With the goal
of increasing value added, it is expected that the government is able to obtain higher revenues and
utilize appropriately. It is certainly also need supervision involving all stakeholders including the

community as agents of democracy. Because ignorance is the initial form of the destruction of this
nation.