Papua – Natural resource management is a key pillar in Indonesia’s economic development. However, for Papua, a region with abundant natural resources in the form of forests, mines and tourism potential, this management is a more complex challenge. The long-standing structural problems faced by indigenous peoples mean that conventional development approaches need to be revisited.
The large government budget allocated to Papua has not succeeded in reducing the economic gap between the community and the rest of Indonesia. This raises a critical question: how to optimize the role of the state, communities and the private sector in managing Papua’s natural resources so that it truly impacts the welfare of local communities?
The management of Papua’s rich natural resources that often attract investors requires an inclusive, fair and sustainable approach. Mohammad Hatta’s idea of populist economy is one of the potential models to be applied in Papua.
This is because it emphasizes the principles of justice and economic democracy, where natural resources are utilized to the greatest extent for the welfare of the people. Through this model, active community participation is prioritized to avoid exploitation and ensure equitable results.
Socialism and Economic Democracy in Managing Papua’s Natural Resources.
In Friedrich Engels’ socialist perspective, natural resources should be managed collectively to prevent domination by a handful of elites or foreign investors. Engels saw that although the state is needed in the early stages to ensure a fair distribution of natural resources. In the end, it is the people who should be the main managers.
This thinking is in line with Hatta’s idea of cooperatives as a tangible form of people’s economy. Cooperatives managed by local communities not only prevent natural resources from external exploitation, but also provide direct benefits to the Papuan people.
As part of Papua’s special autonomy status, the Papua Endowment Fund cooperative is a strategic instrument to realize local economic independence. This cooperative allows the Papuan people to become the legal owners and managers of their natural resources, so that the distribution of profits is more equitable and based on the principle of social justice. With this model, natural resources that were previously only enjoyed by some parties can be collectively owned by the community, strengthening the regional economic structure in favor of the people.
The Papua Endowment Fund Cooperative is designed to give communities full control over the management of their natural resources. With this model, every Papuan can be involved as a cooperative member with voting rights and a role in decision-making.
Not only does this model have an economic impact, it also considers environmental sustainability and Papua’s unique culture, making it sustainable in the long term. This approach differs from previous management that tended to be profit-oriented for private companies and foreign investors.
With a cooperative scheme, Papuan communities have full authority to determine the direction of their natural resource management. They can ensure that the devastating environmental impacts – often seen in large mining projects such as Freeport – are not repeated.
Indigenous communities are also spared the social and economic losses caused by natural resource exploitation. Cooperatives allow economic benefits to accrue directly to local communities, while ensuring that the environment is preserved.