11 23 • Terrestrial and Aquatic Ecosystem Damage: These activities transform landscapes into barren areas, causing soil erosion and water pollution. In illegal gold mines, the use of mercury contaminates rivers and soil, adversely affecting human health and the environment. • Hazardous Mining Pits: Massive excavations create voids that often fill with water, becoming breeding grounds for diseases and triggering landslides or floods. • Absence of Financial Guarantees: Unlike legal mining companies, which are required to place a reclamation guarantee fund (jaminan reklamasi), illegal mines have no such mechanism. • Economic and Social Consequences: Beyond environmental damage, PETI often involves social conflicts, occupational safety hazards, and losses in state revenue. 4. Loss of Biodiversity and Habitat In illegal mining, the loss of biodiversity and habitat is a critical environmental impact because the activities directly destroy the land without any recovery efforts. Unlike legal mines that are mandated to restore the land post-operation, illegal miners typically leave behind giant pits and critical lands that can no longer support flora and fauna life. 3.2 Social Impact Illegal mining (Pertambangan Tanpa Izin/PETI) in Indonesia has devastating and complex social consequences that often outweigh the environmental and economic losses. These activities encroach upon living spaces, ignite conflicts, and compromise public health. The social impacts of informal and illegal mining include: 1. Public Health Disruptions Dust generated from mining activities causes respiratory issues, influenza, chronic coughs, and eye infections among residents living in the vicinity of the mining sites. 2. Economic Loss and Income Instability For local miners or workers in the illegal sector, the income earned is often disproportionate to the risks faced. Their earnings are highly dependent on black market prices and fluctuations in yield, without any certainty of a minimum wage or formal employment contracts. 3. Social Conflict and Legal Uncertainty Illegal mines frequently trigger divisions within the community due to: • Resource Competition: Competition between illegal miners and local residents with different livelihoods (such as farmers or fishers) whose land or waters have been contaminated or damaged.
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