Mining and quarrying are often among the main contributors to Indonesia’s Gross Domestic Product (GDP). In 2023, the sector contributed up to 9.62% of total GDP after contracting as a result of the COVID-19 pandemic.

The sector is also often touted as one of Indonesia’s largest job creators. Even so, 7.2 million people were recorded as unemployed as of February 2024. Although the open unemployment rate declined by more than 600,000 people from the previous year, around 60% of workers are currently employed in the informal sector. This indicates that the mining industry, which remains one of the pillars of Indonesia’s economy, has yet to create enough jobs for the population.

The extractive industry also often gives rise to social and environmental problems, especially in villages whose economies depend primarily on mining and quarrying. Therefore, Greenpeace Indonesia, an environmental nonprofit, has partnered with CELIOS to further investigate the impacts of the extractive industry—particularly mining—on rural community welfare and the environment around mining areas in its latest study.

Mining and extraction activities have long been among the main contributors to Indonesia’s Gross Domestic Product . In 2023, this sector accounted for 9.62% of total GDP, following a contraction caused by the COVID-19 pandemic.

The sector is also often highlighted as one of the largest job creators in Indonesia. However, as of February 2024, 7.2 million people remained unemployed. While the open unemployment rate has declined by more than 600,000 compared to the previous year, around 60% of current workers are employed in the informal sector. This indicates that the mining industry, still a key pillar of Indonesia’s economy, has yet to generate sufficient employment opportunities for the population.

The extractive industry also frequently raises social and environmental concerns, particularly in villages where mining and extraction form the economic backbone. To better understand these impacts, Greenpeace Indonesia has partnered with CELIOS to examine how the extractive sector, especially mining, affects rural community welfare and the surrounding environment in its latest study.

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