Illegal Oil and Gas Exploitation and Its Impact on Sustainable Development in East Aceh Regency

Abstract

East Aceh Regency is one of the regions in Aceh Province with considerable oil and natural gas resources. However, the management of these resources continues to face challenges due to the widespread practice of illegal oil and gas exploitation, which has generated various economic, social, and environmental consequences. This phenomenon reflects a gap between natural resource utilization and the achievement of sustainable regional development. The novelty of this study lies in integrating the analysis of the economic and social impacts of illegal oil and gas exploitation with the perspective of sustainable development as the basis for formulating development strategies in underdeveloped regions. This study aims to analyze the economic and social impacts of illegal oil and gas exploitation on local communities in East Aceh Regency and to formulate contextual sustainable development strategies. A qualitative descriptive approach was employed in this research. Data were collected through field observations, in-depth interviews, and document analysis involving local government officials, community leaders, academics, business actors, and communities living around illegal oil extraction sites. Data were analyzed using the interactive model of Miles, Huberman, and Saldaña, consisting of data reduction, data display, and conclusion drawing, supported by source and technique triangulation to ensure data credibility. The findings indicate that illegal oil and gas exploitation provides short-term economic benefits by increasing household income and creating informal employment opportunities. Nevertheless, it also causes significant negative impacts, including the loss of regional revenue, increased social conflicts, occupational safety risks, and environmental degradation. Therefore, sustainable development requires strengthening natural resource governance, improving law enforcement, empowering local communities, and promoting local economic diversification to ensure that natural resource management contributes to equitable, inclusive, and sustainable regional development