Abstract

This study examines the impact of environmental quality, governance, society, and the economy on decentralization performance and sustainable mineral and coal mining governance in Indonesia. Effective governance in the mining sector is crucial for ensuring sustainability, yet challenges remain in balancing economic growth, environmental protection, and community welfare. The research aims to assess the mediating role of decentralization performance in fostering sustainable mining governance and the moderating effects of governance transformation, including policy reforms, institutional changes, and regulatory updates. A quantitative approach is applied using Structural Equation Modeling (SEM) with the WarpPLS method to analyze governance mechanisms in mineral and coal policy. The results indicate that environmental quality, governance quality, community quality, and economic quality significantly influence decentralization performance. Additionally, decentralization performance enhances sustainable mining governance, reinforcing the need for an effective governance structure. Governance transformation strengthens these relationships, improving regulatory frameworks and institutional mechanisms to support sustainability. This study highlights the importance of structured decentralization and governance reforms in ensuring responsible mining practices. The findings contribute to policy discussions by providing insights into enhancing governance mechanisms for sustainable resource management. Strengthening decentralization and governance transformation can lead to more balanced and effective mining governance in Indonesia.