THE ROLE OF NATURAL CAPITAL IN THE ESTABLISHMENT OF A NEW AUTONOMOUS REGION: THE CASE OF KRAYAN, NORTH KALIMANTAN, INDONESIA

Since the reform era, Indonesia has carried out more than 200 regional divisions for various levels ranging from sub-districts to provinces. Regional proliferation is carried out to reduce the gap between regions. The purpose of the study was to reveal the role of natural capital on the establishment of a new autonomous region in Krayan Regency, North Kalimantan, Indonesia. This research was conducted with a qualitative approach. Data obtained from independent interview and focused group discussion. The focus of this study is as follows: (1) the role of natural capital; (2) the impact of natural capital; (3) develop a model for the formation of a new autonomous region that has a positive impact on natural capital. Result showed that all natural resources in Krayan Region could be appointed as a sign of great potential to support the establishment of a new region. The potential for natural resources in Krayan should be used both traditionally for environmental protection and for the utilization of its environmental services which were very important for the preservation of biodiversity, scientific interests, tourism services or ecotourism. It was necessary to prioritize the sustainability and integrity of natural ecosystems in the process of their use and being responsible by taking into account the preservation of ecological, economic and socio-cultural functions. The model of formation of the New region was supported by prioritizing indigenous people in managing natural resources; geographical location from provincial center; strategic location; acceleration of development to realize prosperity; and use of sustainable natural capital in Krayan.