| Summary: | The aim of this study is to test the natural resource curse hypothesis in Indonesia, especially during regional autonomy era. The natural resource curse hypothesis in this research is tested by using sectoral shift and institutional quality framework, thus we used two indicators of natural resource dependence, i.e. natural resources sector ratio and natural resources revenue-sharing ratio. System GMM estimation technique has been used, which widely known has high flexibility to address the endogeneity bias possibility in cross-country growth regression, we found the prove of natural resource curse hypothesis only during regional autonomy era, but not before decentralization period, eventhough there is only a weak negative effect of natural resources dependence on economic growth. This findings are a warning sign, especially for governments. The government is expected to review natural resource policy associated with natural resource exploitation, which is done on a large scale in regional autonomy era. If the same conditions stay persist, the natural resource exploitation on large scale will lead Indonesia into loses its natural resources, most of which has long recovery period, without getting optimum benefit of natural resource�s loss.
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