Vaudine England – Near Jember, deep in East Java, is the Meru Betiri National Park, home to near-extinct panthers and one of the last great rainforests. But this park could be wiped out as a result of the new regional autonomy law.

Yusuf Merukh, a former member of the House of Representatives, heads a metal company based in the city of Jember. He wants to mine for gold and copper throughout the 56,000-hectare park, as well as in an adjoining 100,000 hectares. And his power at the local level could see that permission granted due to a key plank of regional autonomy – the granting of mining rights through local legislatures, instead of through the central government Department of Energy and Mineral Resources.

Mr Merukh, who also holds a stake in Newmont's gold mine in Minahasa, North Sulawesi, has already convinced the legislative assembly in Jember to support his mining project.

Signs have been erected along all roads leading to the park, featuring slogans such as "From grandchildren to grandparents, everyone can apply for a job at the gold mine" and "Jember will soon become an international city with global networks". At the same time, doubts have been cast on whether any gold lies under the forest. The head of the national park, Indra Arinal, said it would be a catastrophe if the local regent granted the tycoon's wish. "No matter how much gold or copper is contained in the park it could never compensate for destruction of the rainforest, or for the extinction of endangered species such as the Javanese tiger and leopard. Furthermore, major alterations to the ecosystem would cause all of the springs here to run dry," he said.

One major risk of Indonesia's new regional autonomy is that local power-brokers, more easily able to control local legislatures, will cause a dangerous expansion of resource exploitation. "With the authority to manage natural resources lying with regencies, the competition to utilise natural resources will depend on ethnic rivalry. Competition among regents in improving their economy will occur, and this will result in increased exploitation of natural resources," said the Indonesian Forum for Environment.

It is not only the habitat which is at risk but at least 50,000 local families who would have to be moved if the mining went ahead. "The springs will dry up, and we will no longer be able to find the deer and wild buffalo that we are accustomed to hunting," a resident said.

The question is whether local control means control by local residents or only the passage of power from central to local tycoons. The trees of Jember may be among the first victims.