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The Effect of Exploitation of Natural Resources to Economic Growth and Human Development Index in South Kalimantan Province

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The Effect of Exploitation of Natural Resources to Economic Growth and Human Development Index in South Kalimantan Province THE EFFECT OF EXPLOITATION OF NATURAL RESOURCES TO ECONOMIC GROWTH AND HUMAN DEVELOPMENT INDEX IN SOUTH KALIMANTAN PROVINCE Lydia Goenadhi & Nur Astri (Sekolah Tinggi Ilmu Ekonomi Indonesia Banjarmasin) ABSTRACT South Kalimantan has enormous potential for natural resources, but whether the magnitude of natural resource potentials has an effect on increasing prosperity and prosperity of the people, which could have an impact on increasing economic growth and human development index of South Kalimantan Province. This study analyzes the effect of natural resources exploitation on economic growth and improvement of human development index in South Kalimantan province. The analysis used quantitative method with Random Effect model in panel data of time series 2010 until 2016, to see the effect of exploitation of natural resources on economic growth and Human development index. Then reinforced with descriptive qualitative analysis, which aims to observe directly about the effect of exploitation of natural resources on community life at the points of the area where exploitation. The results showed that there was an increase in the rate of economic growth and human development index but the increase was not significant only ranged from 0.66 to 1.2 points only. This shows that the exploitation of natural resources does not have a major impact on economic growth and an increase in the human development index. This means that the slogan that has been echoed that the exploitation of natural wealth can increase prosperity and prosperity, by providing the flow of foreign exchange, the provision of jobs, accelerate economic growth, reduce poverty. But the presence of the oil and gas industry creates an economic enclave, and causes environmental damage that adds misery to the communities surrounding the exploitation area. The government needs to think about other potentials of South Kalimantan in order to increase local revenue, increase economic growth and human development index, from the tourism aspect which is the exploitation of natural resources that are not environmentally destructive and can be directly enjoyed by the local community. Keywords: Exploitation, natural resources, economic growth, human development index A. Background South Kalimantan is a province located on the island of Kalimantan with a total area of 37,377.53 km2 and consists of 12 districts. In essence, economic development is a series of businesses aimed at increasing people's income, expanding employment, leveling people's income sharing, improving economic relations among regions, as well as seeking shifting economic activity from the primary sector to the secondary or tertiary sectors. To realize the economic development is absolutely necessary planning, control and evaluation of the right, so that the development can be implemented on time and on target. In that case statistical data has a very important role in every stage of development implementation. One of the most widely used statistical data for this purpose is the Gross Regional Domestic Product (GRDP). GRDP is a regional macroeconomic indicator that can reflect the economic performance of a region. The magnitude of GDP at any given time can be used as a reflection of economic performance and as a picture of the economic structure of a region, while the time-varying GRDP ratio can be used as an indicator of economic development progress in the area. South Kalimantan's economy in the second quarter-2017 measured by the amount of Gross Regional Domestic Product (GRDP) reached Rp 39.68 trillion. The economy of South Kalimantan in the second quarter of 2017 compared to the second quarter-2016 (y-on-y) grew by 5.15 percent, this condition increased compared to the growth (y-on-y) in quarter II-2016 which amounted to 4.51 percent, decrease compared to the first quarter-2017 of 5.30 percent. This growth is supported by all business categories. The highest growth was achieved by information and communications of 9.90 percent followed by financial and insurance services of 8.56 percent and transportation and warehousing by 8.11 percent. The structure of GDP of South Kalimantan by business field based on current prices in Quarter II-2017 is still dominated by three main business fields: mining and quarrying by 19.90 percent; agriculture, forestry and fisheries by 16.22 percent and the processing industry by 14.01 percent. When viewed from the creation of South Kalimantan's economic growth sources in Quarter II-2017 (y-on-y), the mining and quarrying categories have the highest growth source of 1.25 percent; followed by agriculture, forestry and fishery category of 0.69 percent and the manufacturing industry by 0.53 percent. Human development can be sustainable if supported by economic growth. Although both do not have a relationship automatically, but if the two things are integrated into a single development policy, will create a force that can encourage each other. So that economic growth will be very effective to improve human development. The achievement of human development is measured by considering three aspects, namely longevity, health, knowledge and decent standard of living. Therefore, the improvement of Human Development Index (HDI) achievement could not be separated from the improvement of each component. Human Development Index (HDI) of South Kalimantan Province according to life expectancy at birth (AHH), school life expectancy (HLS), average school length (RLS) and per capita expenditure adjusted from 2011 to 2016 as shown in table 1 below : Table1. Human development Index (HDI) of South Kalimantan By Component, from 2010- 2016 Component Unit 2010 2011 2012 2013 2014 2015 2016 Life expectancyat birth 66.65 66.88 67.11 67.53 67.47 67.80 67.92 School long Expectation 10.68 11.14 11.54 11.67 11.96 12.21 12.29 Average School period 7.25 7.37 7.48 7.59 7.60 7.76 7.89 Per capita exppenditure 10.305 10.437 10.553 10.655 10.748 10.89 11.307 adjusted IPM 65.20 65.89 66.68 67.17 67./63 68.38 69.05 IPM Growth (%) 1.20 0.73 0.68 0.68 1.31 0.98 Source: BPS Kalimantan Selatan, 2016 Human Development Index in South Kalimantan in 2016 continues to progress marked by the increasing Human Development Index (HDI). In 2016 South Kalimantan's HDI has reached 69.05. This number increased by 0.67 points compared to 2015 by 68.38. Based on Gross Domestic Revenue (PDRB), human development and economic growth contributes to the improvement of HDI in South Kalimantan Province. Economic growth increases the supply of resources needed for human development. Increasing resources along with appropriate allocation of resources and an increasingly widespread distribution of opportunities, particularly employment opportunities, encourage better human development. In the Province of South Kalimantan, there are several regencies / municipalities that contribute substantially to the Gross Regional Domestic Product (GDP) of the natural resources are Kotabaru, Tanah Bumbu, Banjar, Balangan and Tabalong Districts Based on Gross Regional Domestic Revenue (PDRB ), human development, and economic growth that contributed to the improvement of HDI South Kalimantan Province. Human development can be sustainable if supported by economic growth. Although both do not have a relationship automatically, but if the two things are united in a unified development policy, it will create a force that can encourage each other. So that economic growth will be very effective to improve human development. To improve the welfare of the community, it is necessary to increase economic growth and equitable distribution of income, the development of a State can be directed to three main things namely increasing the availability and distribution of basic needs for the community, improving people's living standards and improving the community's ability to access both economic activities and social activities in its life. Human development is defined as the process of enlarging people choice. HDI is an important indicator for measuring success in building the quality of human life (community / population). IPM explains how people can access development outcomes in obtaining income, health, education, and so on. This research would like to see the effect of natural resource exploitation on economic growth and human development index in South Kalimantan. The purpose of this research is to analyze the effect of natural resources exploitation on economic growth and human development index in South Kalimantan. B. Literature Review Exploitation comes from English, is for the benefit of economy or welfare. Exploitation of natural resources means taking and using the natural resources for the purpose of fulfilling human needs. Exploitation of natural resources that neglect the environment will threaten the sustainability and availability of natural resources. Article 33 Paragraph (3) of the 1945 Constitution states that "Earth and water and the wealth contained therein are controlled by the State and used for the greatest prosperity of the people". One of the important principles in the utilization of natural resources in Indonesia's development is the renewal of the renewable management of natural resources. Therefore, for the sustainable use, natural resource exploitation measures should be accompanied by protection measures. Maintenance and development of the environment must be done in a rational way, among others, as follows: a. Utilize renewable and cautious renewable natural resources, such as water, soil, and air. b. Using replacement materials, such as metallurgical results (mixtures) c. Developing efficient methods of mining and processing, as well as recycling, d. Implement environmental ethics based on the philosophy of living in peace with nature. Natural resources are a potential value possessed by a certain material or element in life. Resources are not always physical, but also non-physical. Natural resources are something that can be utilized for the various interests and needs of human life for a more prosperous life that exists around our natural environment.
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