Rationality Conflict Between the Government and The Community: A Case Study on Illegal Gold Mining in Prabu Village, West Nusa Tenggara Province Agus 1 , Ida Hayu Dwimawanti 2 {ida2hade@gmail.com 2 } Universitas Diponegoro, Indonesia 1, 2 Abstract. This paper discusses the phenomenon of illegal gold mining in Prabu Village, Central Lombok Regency, West Nusa Tenggara, using the theory of the impact of the use of mercury, rational choice theory, and the role of local government theory. The use of mercury in mining endangers health and destroys the environment. Since the mining activities are still occurring, the role of regency government in preventing living environmental damage is still not effective. It is suggested that provincial government closes down the mine. Keywords: Illegal mining, Impact, Rationality, Local Government. 1 Introduction Central Lombok is one of the nine regencies and cities in West Nusa Tenggara Province. The regency consists of 12 districts, out of which is Pujut, which is the district with the widest area. The strategic policy implemented by the local government is tourism-based area development. This strategic policy is thus in line with the establishment of Mandalika as Special Economic Zone by the government. Indonesia is a country with overflowing natural resources. Apart from being wide, the country consists of islands. Thus, at this time, the right governing management is is decentralization. It is hoped that this will foster initiative and the role of local government in accelerating public welfare. This concept is stated as the objective of local government regulation in Law number 23 Year 2014 about Local Government [1]. The Law firmly states that the implementation of local government is directed to accelerate the realization of public welfare through service improvement, community empowerment and participation, as well as the enhancement of the regions’ competitiveness by taking into account the principles of democracy, equality, justice, and the peculiarities of a region within the Unitary State of Republic of Indonesia. Public welfare and living environment sustainability, which are supposed to be synergized, are not always easily manifested. The government’s policy to accelerate public welfare, or the public’s desire to be prosperous faster, if not controlled, will result in the destruction of living environment. As a prevention, Local Government Laws grant the regency/ city government the authority to do prevention, counter measurement, and control on the contamination of living environment. ICIPSE 2019, October 21-22, Semarang, Indonesia Copyright © 2020 EAI DOI 10.4108/eai.21-10-2019.2294345