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Extractive Enclaves and the Development Trap: Why Resource-Rich Regions Continue to Lag Behind

Indonesia’s commodity-producing regions remain caught in a cycle of extractive dependence. Despite generating substantial volumes of coal, palm oil, minerals, fisheries products, and other primary commodities, many of these regions struggle to convert resource wealth into sustainable economic development. Rather than capturing greater value from their natural assets, local economies remain heavily reliant on the export of raw materials, leaving them highly vulnerable to fluctuations in global commodity markets.

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