Conflict of Interest in Natural Resource Management and Public Policy Implications

Abstract

Natural resources constitute a strategic asset controlled by the state and utilized to achieve the greatest prosperity of the people as mandated by the Constitution. However, the management of natural resources in Indonesia frequently encounters conflicts of interest involving government officials, business actors, and political elites. Such conflicts potentially influence policy-making processes and create public policies that prioritize particular interests over public welfare and environmental sustainability. This research aims to analyze the forms of conflicts of interest in natural resource management and examine their implications for public policy in Indonesia. This study employs normative legal research using statutory, conceptual, and case approaches. The findings indicate that conflicts of interest may occur in licensing, supervision, policy formulation, and law enforcement processes. These conditions contribute to regulatory bias, weak environmental protection, unequal distribution of economic benefits, and declining public trust in government institutions. Furthermore, the study finds that inadequate transparency and accountability mechanisms create opportunities for regulatory capture, allowing private interests to influence public decision-making. Therefore, strengthening regulations concerning conflict-of-interest prevention, enhancing public participation, and implementing transparent governance mechanisms are necessary to ensure sustainable and equitable natural resource management. The novelty of this study lies in its examination of the relationship between conflicts of interest and public policy outcomes within the framework of natural resource governance and sustainable development principles.