An Analysis of Indonesian Economic Development: Case Study Mining Business in Papua Province

Abstract

This paper will analyze modernization and dependency theory in Freeport business towards economic development in Papua. This study also aims to understand the historical background of Freeport Indonesia, particularly Indonesia's political government relation with this business and its social impact. This study uses a qualitative method with historical and descriptive research. After field observation, interview, and document review, this study found that the Marxism perspective is relevant to Freeport's business that develops good relations with the Indonesian state elite to secure their business in Papua. Soeharto's government was contradictory to John Locke's theory to protect people's rights. Due to the inability to maintain performance legitimacy proved by human rights violence and economic recession, a mass demonstration led to democratization and over Soeharto regime. Last, Papua's economic development remains in the traditional stage and strong dependency on Freeport Business.