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Bali hast two main material exploitation area producing stone and sand mainly used for building construction material, which both are running out of deposit. The negative environmental impact in Karangasem is by far worse that its contribution to local revenue. Massive exploitation to non-renewable material deposit is leading to flood in rainy season and water supply crisis in dry season.

Conservation area along hillside slope including protected area in Pempatan village which supposed to retain water deposit has been destructed, bringing along further destruction to rivers. There is no real statistic on the width of devastated area as in addition to those having exploitation license, there are a lot more which do not even have a license, including small production spots made by local residents individually.

In the district of Kubu a number of large scale as well as manual exploitation invited concern of local residents as they potentially affect the construction of flood controlling dams. “Who is taking responsibility of reconstructing those destroyed dams”, asked the head of the district Drs. Wayan Sutapa M.Si. The Governor of Bali Dewa Made Berata during his inspection last year complained the absence contribution from the such exploitation into provincial revenue, whilst on the other hand heavy trucks transporting the products bring destruction to the roads, which the provincial government has to fix.

Local residents are also complaining bad behavior of the truck driver who often drive recklessly.

Member of the regency house of representative Gede Dana express similar views. Revenue contribution received by local government could not sufficiently compensate environmental impact as well as reconstruction of continuously destructed roads. He reminded that material exploitation only contributed 3.7 billions Rupiah into local government revenue in 2007.

The agency for environmental impact control (Bapedalda) reported the worst environmental destruction take place in protected conservation areas around Selat. The exploitation area on the slope of Mount Agung around Sebudi and Yeh Kori once resulted a landslide which killed a number of residents.