The Regional Economy Of Downstreaming Increases But The Poverty Rate Increases Significantly

JAKARTA - Executive Director of Reforminer Komaidi Notonegoro revealed that the results of research carried out showed that economic growth in regions that became mine investment bases rose significantly. However, this increase in economic growth was not accompanied by a level of community welfare.

He gave an example in the Halmahera region, Maluku, economic growth in 2020 to 2023 ranged from 20-25 percent. This figure is far above the national economic growth average which grew 5-6 percent.

"But in these areas, the poverty rate, the depth of poverty, and the severity of poverty have increased significantly," said Komaidi at the Leaders Forum Detik, Tuesday, September 17.

Komaidi said, in calculating economic growth in terms of expenditure or Gross Regional Domestic Product (GDP) there are 4 indicators, including household consumption, government consumption, company investment, and net export value.

"The biggest part is the component of private investment, or the establishment of fixed gross capital," he added.

Based on data owned, Komaidi noted that in the last 3 years, Foreign Capital Participation (PMA) of 60 percent was outside Java and only centered on the area with the smelter bases.

"Well, what does that mean? This means that the economic cakes that rose significantly earlier, they did not return to the local community," he explained.

For this reason, he asked the central government and local governments to immediately intervene so that the impact of downstreaming can also be felt by the surrounding community.

"If this is not done this interference will be a time bomb because then in the regions we feel this is our natural wealth being dredged but we have nothing, I think this is a very basic problem," said Komaidi.