PurposeThis study aims to understand the process, structure and determinants of persistent illegal gold mining in Indonesia.Design/methodology/approachAn exploratory study included a literature review, field observations and in-depth interviews. Fieldwork was conducted at two mining locations in Kalimantan, Indonesia. Sixteen respondents representing key stakeholders: government, mining companies, mining associations and community, including illegal miners, were interviewed. The findings of the literature review were categorized as the push or pull factors within the topics, and field observations verified the literature review results regarding Indonesia. Interview data were analyzed using content analysis methods. A structural diagram of the actors and causal loop diagrams among the determinants of illegal gold mining was created and interpreted.FindingsA complex activity process and structure were revealed involving a range of actors. Politicians, government officials and law enforcement authorities added the complexity to the structure. Six main determinants of persistent illegal gold mining emerged: financial, low entry barrier, regulations and policies, supporting resources availability, politics and power and psychosocial factors.Practical implicationsThis study provides a deeper understanding for policymakers to consider when formulating policies on natural resources, and insights for mining companies to minimize conflicts with the community.Originality/valueThe study contributes to our knowledge of the complex structure and main determinants of illegal gold mining in Indonesia, which supports efforts to curtail this illegal activity.

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Abstract. Illegal gold mining has disturbed the operation of a mining company (Indo Muro Kencana) in Central Kalimantan since the early 1990s. Several disputes have happened, including two serious conflicts, causing financial losses, damage to facilities, and fatalities, forcing the company to stop operations in 2002 and 2013. Eventually, the original investors abandoned the site. Various countermeasures were taken, including harsh law enforcement involving police and military forces’ deployment, yet the illegal mining activities continued. Since 2015, the new management has implemented new approaches; within five years, the number of illegal miners has decreased considerably. This study aims to identify the reasons behind the disputes and how the new management reduces illegal mining within its concession without triggering further conflict. This research is a case study using in-depth interviews, complemented by a study of corporate and media documents. Five factors were identified behind the previous conflicts. The new management’s integrated strategy to manage social issues, including illegal mining, started with social mapping, then an integrated team to deal with social issues was established, and finally, an integrated plan was introduced with four agendas: engagement, presence, respect and inclusiveness, and cohesiveness. This study contributes to company-community model building in similar circumstances and, in practice, offers a solution to curtail illegal gold mining, particularly in Indonesia. Keywords: Conflict, illegal gold mining, illegal miners, integrated, Kalimantan.