Poppy S. Winanti1 and Muhammad Djindan2
1Universitas Gadjah Mada Department of International Relations, Indonesia,
2Universitas Gadjah Mada Department of Politics and Government, , Indonesia
The fall of Soeharto has marked a major political change in Indonesia which is mainly characterized by the broader implementation of democratization and decentralization. This article focuses on the changes, or the lack thereof, in extractive industries governance in the post authoritarian regime and its impact on the welfare of the local community. It is widely believed that decentralization has provided the sub-national government with a greater authority and thus is expected to create a better extractive industries governance. However, more than twenty years after reformasi we found that the political change in the form of decentralization in extractive industries governance does not necessarily create a more democratic extractive governance, let alone bring prosperity for the people as expected. The experience of some resource-rich regions shows that the failure of greater autonomy in decentralization is mainly caused by the fact that locally-based natural resources governance also provides more opportunities for local political actors to engage in rent-seeking activities. Despite the decentralization and greater autonomy in the governance of extractive industries, this article argues that there is a lack of meaningful democratic changes in this sector.