This study delves into the intricate social dynamics of South Kalimantan’s traditional diamond mines, revealing a potential for conflict amidst the promise of economic uplift. South Kalimantan is one of the provinces in Indonesia, known nationwide for its diamond production. Going beyond conventional economic and environmental perspectives, the research employs Galtung’s Conflict Theory, examining the interplay of attitudes, behaviours, norms, values, and political influences. By adopting this nuanced approach, the study unveils hidden fault lines within these communities, providing a comprehensive understanding of how diverse factors converge to create discord. The consequences of unaddressed conflict include shattered livelihoods, environmental degradation, and fractured communities. The study employs rigorous quantitative methods to empower stakeholders in proactive conflict management, including questionnaires and Structural Equation Modeling (SEM) with data from 400 respondents. The findings underscore the significant roles of behaviours, attitudes, norms, and politics in fueling tension, with values demonstrating surprisingly less direct influence. This insight is a roadmap for conflict prevention and sustainable development, allowing stakeholders to tailor interventions based on specific conflict-driving factors. The study urges a shift from reactive to proactive measures, envisioning a future where prosperity continues and communities thrive in harmony, free from conflict.