Abstract
he natural resources utilization for economic development has become the driver of land cover and environmental change. Logging and coal production have created dryland. The policy of natural resources utilization for development in Kutai Timur Regency has changed the net value of its natural resource capital. For Kutai Timur Regency it is recorded that between the year of 2004 - 2006, the income of its natural resources was as much as Rp. 13,39 Trillion. The total change of the economic value of its resource has also created the need for the environmental cost of Rp. 191 Billion annually since around 95,742 ha has changed into dry land. However comparing to the need of annual budget to treat the critical land, the net value of its natural resources capital is relatively high.
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