Trend of Mineral Commodity Price and its Impact on the Indonesia Economy 1990-2025

Abstract

Indonesia is one of the mineral rich developing countries in the world. Indonesia has a large quantity of mineral resources such as natural oil and gas, hard minerals (metallic, non metallic/industrial mineral, coal, and stone), because it is located in the Pacific ring of fire. Mineral and energy commodities have always been giving contribution to Gross Domestic Product (GDP) of Indonesia besides doing regional development, because of its potential mineral resources. Trade of mineral commodity aims is to gain from trade of mineral to increase economic growth through Balance of Trade (BOT). Mineral commodity markets have been volatile for a long time. The trends of mineral commodity prices have been fluctuated and recently it changed dramatically due to commodity prices to increase within only several years. The aims of this study are to comprehend recent contribution of mining sector to Indonesian economy 1990Indonesian economy -2014 and to analyze forecasting of mineral commodity future prices until 2025. The price trends of commodity mineral is increasing from time to time, but sometimes decreasing because of world crisis, scarcity, and other problems in the world related to mining, trade, and relationship between countries, such as fundamentals matter, including long-run demand growth, technical change that opens up new sources of supply, changes that transform the operation of financial markets, and macro-economic shocks, etc. Mining sector contribute about 6-12% of Indonesian Gross Domestic Product and increasing from time to time. Contribution of mining includes trade of mineral commodity, regional development by companies, etc. It is shown that mining is important for Indonesian economy. Methodology applied in this paper is data analysis using dynamic commodity and macroeconomic models and forecast using linear and polynomial regression with its trend line.

Future direction of Au agromining on how to solve artisanal and small scale gold mining problems

“…The mining sector, including Au mining, accounts for 6-12% of the gross domestic product (GDP) of Indonesia. This has made the Au mining sector one of the backbone of the Indonesian economy (Soelistijo et al, 2015;Spiegel et al, 2018). Until 2010, more than one million workers were involved in the mining sector of Indonesia.…”

The Effect of World Oil Prices, Gold Prices, and Other Energy Prices on the Indonesian Mining Sector With Exchange Rate of Indonesian Rupiah as the Moderating Effect

“…Many mineral resources can be found in the country, such as oil and gas and hard material (stone, coal, and metallic) because, in the Pacific ring of fire, located in the country that can we see on figure 1. Indonesia's gross domestic product, mineral, and energy commodities have always contributed (Soelistijo et al, 2015). The trade of mineral commodities' primary intent is to gain from the exchange of minerals to encourage economic growth through Balance of Trade (BOT).…”