Trend of Mineral Commodity Price and its Impact on the Indonesia Economy 1990-2025
Earth Sciences
Volume 4, Issue 4, August 2015, Pages: 129-145
Received: May 24, 2015; Accepted: May 29, 2015; Published: Jun. 29, 2015
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Authors
Ukar Wijaya Soelistijo, University of Islam Bandung (UNISBA), Department of Mining Engineering, Faculty of Engineering, Bandung, Indonesia; Institute of Technology Bandung Department of Mining Engineering, Faculty of Mining and Petroleum Engineering, Bandung, Indonesia; Center for Education and Training of Mineral and Coal, Ministry of Energy and Mineral Resources, Bandung, Indonesia
Pakerti Lutzow Anjani, Institute of Technology Bandung, Department of Mining Engineering, Faculty of Mining and Petroleum Engineering, Bandung, Indonesia
Hanif Ikhsan Pratama, Institute of Technology Bandung, Department of Mining Engineering, Faculty of Mining and Petroleum Engineering, Bandung, Indonesia
Hariono La Pili, University of Halu Oleo, Department of Mining Engineering; Faculty of Engineering, Kendari, Indonesia
Mixsindo Korra Herdyanti, University of Trisakti, Department of Mining Engineering, Faculty of Engineering, Jakarta, Indonesia
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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 1990-2014 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.
Keywords
Mineral, Price Trend, Trade, Forecast, Economy
To cite this article
Ukar Wijaya Soelistijo, Pakerti Lutzow Anjani, Hanif Ikhsan Pratama, Hariono La Pili, Mixsindo Korra Herdyanti, Trend of Mineral Commodity Price and its Impact on the Indonesia Economy 1990-2025, Earth Sciences. Vol. 4, No. 4, 2015, pp. 129-145. doi: 10.11648/j.earth.20150404.11
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