Transparency, Greenwashing and Political Economy of Natural Resource Governance in East and West Java's Extractive Industries

Abstract

This study analyzes the complex interconnections among greenwashing practices, transparency levels, and political economy dynamics in natural resource governance within the extractive industry sector of East and West Java. While crucial for the national economy, this sector frequently hosts environmentally damaging and socially detrimental practices. Addressing the critical issue of deceptive corporate environmental claims and governance deficiencies, this study aims to explore how greenwashing, often misused in sustainability reporting and linked to CSR corruption, flourishes within this context. It also examines the significant transparency challenges, including policy dissonance, bureaucratic complexities, and limited public participation, despite initiatives like EITI and mining permit digitalization. The research investigates how political economy dynamics—characterized by power imbalances, rent-seeking, and local oligarchy—fundamentally shape governance. Findings indicate that greenwashing thrives in environments with low transparency and strong political-economic control, where short-term profit incentives overshadow genuine sustainability. Therefore, this report advocates for a holistic approach, recommending strengthened anti-greenwashing regulations, enhanced transparency and accountability mechanisms, comprehensive resource governance reform, civil society empowerment, and economic diversification to achieve more equitable and sustainable development.