The Influence of Foreign Investment on Natural Resource Development in Indonesia

This study aims to analyze the influence of foreign investment on the development of natural resources (SDA) in Indonesia using a descriptive qualitative approach. Foreign investment plays an important role in driving economic growth through the provision of capital, technology, and job creation, especially in the mining, energy, and plantation sectors. However, behind its contribution, there are major challenges related to environmental sustainability, social inequality, and the dominance of control of natural resources by foreign parties. The data in this study were obtained through library research, document review, and analysis of relevant literature. The results of the study indicate that the development of natural resources involving foreign investment often does not fully prioritize the principles of social justice and ecological sustainability. Therefore, an active role is needed from the government, society, academics, and NGOs to ensure that foreign investment is not only economically profitable, but also fair and sustainable. This study recommends strengthening regulations, technology transfer, local community involvement, and increasing transparency in every process of natural resource investment.

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Publication Details

Journal
Jurnal Pengabdian Masyarakat dan Riset Pendidikan
Published
2025-05-27
DOI
https://doi.org/10.31004/jerkin.v3i4.824
Primary Topic
Natural Resources and Economic Development
Type
article
Field-Weighted Citation Impact
0.00
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article

The Influence of Foreign Investment on Natural Resource Development in Indonesia

Nur Arisah, Marhawati, Andi Caezar To Tadampali, Syamsu Rijal et al.
Jurnal Pengabdian Masyarakat dan Riset Pendidikan
Natural Resources and Economic Development
article

The Influence of Foreign Investment on Natural Resource Development in Indonesia

Nur Arisah, Marhawati, Andi Caezar To Tadampali, Syamsu Rijal, Sri Hutami Adiningsih S
article en

Abstract

This study aims to analyze the influence of foreign investment on the development of natural resources (SDA) in Indonesia using a descriptive qualitative approach. Foreign investment plays an important role in driving economic growth through the provision of capital, technology, and job creation, especially in the mining, energy, and plantation sectors. However, behind its contribution, there are major challenges related to environmental sustainability, social inequality, and the dominance of control of natural resources by foreign parties. The data in this study were obtained through library research, document review, and analysis of relevant literature. The results of the study indicate that the development of natural resources involving foreign investment often does not fully prioritize the principles of social justice and ecological sustainability. Therefore, an active role is needed from the government, society, academics, and NGOs to ensure that foreign investment is not only economically profitable, but also fair and sustainable. This study recommends strengthening regulations, technology transfer, local community involvement, and increasing transparency in every process of natural resource investment.

Jurnal Pengabdian Masyarakat dan Riset PendidikanVol. 3(4)
State University of Makassar (ID)
Openalex Percentile: Top 82%
Natural Resources and Economic Development
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