The Impact of Coal Mining on the Economy and Environment of South Kalimantan Province, Indonesia

This study investigates the impact of coal mining on the economy and environment of South Kalimantan Province, one of the most important coal producing regions in Indonesia. It uses a Social Accounting matrix to assess how the industry affects the province's economy and the livelihoods of its people. It also investigates what policy options will best reduce its negative environmental impacts at least cost to the province's economy. The study, by Luthfi Fatah of Lambung Mangkurat University, finds that mining is one of the most significant parts of the province's economy and that it is steadily growing in importance. However, it also shows that the industry disproportionately benefits the better-off sectors of society and is having an unacceptable impact on the environment. Fatah recommends that policy makers slow the growth in coal mining through regulation of small-scale mining. This should help the environment. He also suggests that the government boost investment in agricultural -based activities to improve the employment prospects of the poorer sectors of society.