Breaking The Natural Resource Curse: How The Gig Economy Can Transform Indonesia’s Mining Regions
Keywords:
gig economy resource curse DBH SDA mining regions economic inclusionAbstract
Mining regions in Indonesia face a paradox: abundant natural resources do not automatically translate into improved local welfare. Although extractive and processing sectors contribute significantly to regional economies, a generous part of the local workforce stays in the informal sector, lacking social protection, fair wages, or clear career pathways. This situation exemplifies the natural resource curse, where economic growth does not necessarily improve the quality of life for communities. This study offers a novel perspective by exploring the gig economy as a strategy to overcome the resource curse. Flexible work, including transportation, catering, digital logistics, mining subcontracting, and local e-commerce, offers opportunities to expand employment and diversify income sources. However, significant barriers such as limited digital access, low skill levels, and geographic remoteness constrain labor-market connectivity. With the available fiscal space, the Natural Resource Revenue Sharing Fund (DBH SDA) could be optimally used for community empowerment and social protection programs. Using a mixed methods approach, combining quantitative analysis with qualitative literature review, the study identifies practical intervention pathways: developing digital platforms that connect mining companies with flexible workers, distributing DBH SDA for skills training, certification and digital infrastructure, and strengthening social protection through flexible contracts and policies prioritizing local vendors. Findings suggest that, with a supportive ecosystem, fiscal instruments, and social protection, the gig economy is more than a transient trend. It represents a concrete strategy for economic diversification and improving living standards in mining regions, turning labor flexibility into a driver of sustainable development and a promising pathway to break the resource curse.
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