Jan 16, 2026
3 min read
Venezuela's oil and mineral wealth fuels crises, geopolitical conflicts, and foreign interventions.This is the story of how a blessing turned into a curse.
Lessons from Venezuela for Indonesia: God's blessing becomes a curse
Thursday January 15, 2026 | 5:00 p.m. WIBJakarta, - Venezuela has long been known as a country blessed with extraordinary wealth in natural resources.The world's largest oil reserves, abundance of gas, gold and rare earths make Venezuela a global treasure.
However, instead of bringing sustainable prosperity, this wealth has actually become a source of economic crises, political conflicts and struggles based on geopolitical interests.
In this context, Venezuela's natural blessings are often seen turning into curses that burden the country's journey.
Diverse Natural Heritage of Venezuela
Venezuela's natural resources are not limited to oil.The country also has the sixth largest reserves of natural gas in the world, as well as various strategic minerals such as gold, iron ore, bauxite, coltan and thorium.
From smartphones, to electric cars, to weapons, to renewable energy, these materials are truly essential to modern industry.
This situation brings Venezuela under the scrutiny of the interests of major countries, especially the United States.During Donald Trump's presidency, Washington has publicly emphasized Venezuela's energy potential.
Trump went on to say that the rights of US energy companies have been taken over by the Caracas government since the controversial nationalization of the oil industry in 2007.
This statement emphasizes that for the US, Venezuela is not only an ideological problem, but a matter of controlling energy and mineral resources of strategic value.
I hope that direction will change
As Venezuela's oil industry collapsed in 2014-2015 and a food and medicine crisis spread, the government turned to the mining sector.In 2016, the Orinoco Mining Arc was created, an area covering about 12% of the national territory south of the Orinoco River.
The area is believed to contain more than 8,000 tons of gold, diamonds, nickel, coltan and other rare earth minerals.In practice, however, the Orinoco Mining Arc is known as a center for organized crime.
Illegal mining, political and military corruption, cross-border smuggling and extensive environmental damage characterize this region.
Mining operations involve corporate alliances close to the ruling elite, as well as illegal armed groups such as the ELN, remnants of the FARC and the Tren de Aragua criminal group.
Although the government cooperates with foreign partners such as Turkey and South Africa, most of the mining products leave the country through illegal channels.It is estimated that only about 14% are officially registered.
For decades, Venezuela has been one of the world's largest oil exporters.From the 1960s to the 1970s, the country's economy grew steadily with the oil boom.
According to World Bank data, Venezuela's GDP in 1960 was $7.66 billion and grew with energy exports.
During the reign of President Hugo Chavez (1999-2013), oil revenues were used largely to finance social programs within the framework of the Bolivian Revolution.This policy increases short-term welfare and strengthens the government's political position.
The pinnacle of Venezuela's economic success was achieved in 2010, when the nominal GDP reached $393.12 billion.At that time, GDP per capita reached $13,643, five times that of Indonesia in the same year.But this growth has a weak foundation, because it depends very much on one primary commodity.
After 2013, the situation changed dramatically.The fall in oil prices in the world, combined with price control policies, exchange restrictions, industrial land and international sanctions, led to the collapse of the Venezuelan economy.In 2020, this country's GDP fell to about 42.84 billion US dollars, or about 89% less than its peak.
The crisis led to hyperinflation, commodity shortages, high unemployment, and rising crime rates.More than seven million Venezuelans eventually left the country and fled to neighboring countries, making the migration crisis one of the largest in the world today.
There have been signs of a limited recovery since 2021. The easing of economic controls and the use of the US dollar in domestic transactions has helped to revive some economic activities.
However, by 2024, Venezuela's GDP will still be around US$119.8 billion, with a GDP per capita of around US$4,217, well below pre-crisis levels and even lower than Indonesia.
Territorial disputes and geopolitical pressure
Amid the country's internal crisis, Venezuela is also embroiled in a long-standing border dispute with Guyana over the Essequibo oil field.
This territory has been administered by Guyana since 1899, but Caracas still claims sovereignty.This dispute is increasingly heating up the regional geopolitical situation, especially when the energy potential in the area begins to be exploited.
Tensions with the United States have increased due to Washington's accusations against Nicolas Maduro's government, from human rights violations to ties to international drug networks.For Caracas, all these tensions are believed to be motivated by the desire to control Venezuela's energy reserves.
In Donald Trump's second term, tensions rose significantly.The US has deployed military forces in the Caribbean region, increased sanctions and carried out military operations that led to the arrest of President Nicolás Maduro in January 2026.
Maduro was arrested by the US military and brought to the US to face narcoterrorism charges.
Washington called the move part of its war on drugs, while many saw the operation as a direct attempt to topple the Venezuelan government to control its oil and gas.
Trump has publicly expressed his desire to involve major U.S. oil companies in repairing Venezuela's damaged oil infrastructure and tapping the country's energy reserves.
But analysts say the plan faces major challenges ranging from the billions of dollars to the long-term costs it takes to restore much lower oil production.
Despite proven oil reserves of around 303 billion barrels, Venezuela's production has fallen sharply.By November 2025, oil production is expected to be around 860,000 barrels per day, less than a third of production a decade ago.
The decline was caused by infrastructure damage, international sanctions and an exodus of experts from state oil company PDVSA.The heavy and acidic nature of Venezuelan oil also requires special processing techniques, so it will require significant investment and a long time to regain competitiveness.
Venezuela's long economic journey shows that wealth in natural resources does not automatically guarantee prosperity.The potential can be hampered by excessive dependence on one commodity, weak governance, and internal and external political conflicts.
Venezuela's story is a true reflection of how natural wealth can be a double-edged sword.Strategic oil, gas and mineral reserves should be the basis of prosperity.But without economic diversification, strong government and political stability, this blessing turns into a curse.
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