Analysis of the Impact of the Mining Industry on the Social and Economic Conditions of the Community Around the Industrial Area of Konawe Regency

Abstract

Nickel mining industrialization has expanded rapidly as part of Indonesia’s downstream resource policy aimed at stimulating economic growth and regional development. Conceptually, the presence of industry is expected to generate multiplier effects such as increased income, employment opportunities, and local economic activity. In practice, however, a development paradox often occurs in which economic growth is not always followed by improved community welfare. Differences in the level of exposure among communities surrounding industrial areas create unequal distribution of benefits and risks, requiring an impact analysis based on affected rings.This study aims to analyze the social and economic impacts of mining industry activities on communities around the industrial area of Konawe Regency and to evaluate the effectiveness of Corporate Social Responsibility (CSR) programs. A descriptive qualitative approach was employed using observation, in-depth interviews, and documentation in villages classified into Ring 1 (directly affected) and Ring 2 (indirectly affected).The results show that Ring 1 experiences the most significant social, economic, and environmental pressures, characterized by the decline of traditional livelihoods, limited access to formal mining employment, degradation of natural resources, changes in social interaction, and inequality in local power structures. Ring 2 remains relatively stable and benefits from economic multiplier effects through the growth of trade and services. CSR programs remain partial and have not been oriented toward productive economic empowerment, so the benefits received by communities are not proportional to the impacts, especially in Ring 1.The study emphasizes the importance of participatory, inclusive, and sustainable environmental management and CSR implementation based on local needs to ensure fair community welfare improvement.