Economic features of the artisanal and small-scale gold mining industry in Bombana, Southeast Sulawesi, Indonesia

Abstract

There is a consensus that the artisanal small-scale gold mining (ASGM) sector contributes to trapping individuals in a cycle of poverty and financial insecurity with a low standard of living. The purpose of this study was to analyze the economic circumstances of miners in the Bombana ASGM area in Indonesia using a mixed methodology approach that involved collecting, analyzing, and mixing both quantitative and qualitative data in a single study. Results show that the average and maximum monthly incomes of 201 miner households were Rp. 4,360,000 and Rp. 9,750,000, respectively. The average income in the ASGM area in Bombana was higher than that at similar sites on Java Island (∼Rp. 2,900,000) and was much higher than the average monthly income of the inhabitants of Bombana (∼Rp. 2,100,000). Because of the higher revenue generated in the ASGM sector, miners and their families depend long-term on the mining work, which makes it difficult to control the mining activity and the associated environmental degradation.