Boom, Bust and Up Again? Evolution, Drivers and Impact of Commodity Prices: Implications for Indonesia

Indonesia is one of the largest commodity exporters in the world, and given its mineral potential and expected commodity price trends, it could and should expand its leading position. Commodities accounted for one fourth of Indonesia's Gross Domestic Product (GDP) and more than one fifth of total government revenue in 2007. The potential for further commodity growth is considerable. Indonesia is the largest producer of palm oil in the world (export earnings totaled almost US$9 billion in 2007 and employment 3.8 million full-time jobs) and the sector has good growth prospects. It is also one of the countries with the largest mining potential in view of its second-largest copper reserves and third-largest coal and nickel reserves in the world. This report consists of seven chapters. The first six chapters present an examination and an analysis of the factors driving increased commodity prices, price forecasts, economic impact of commodity price increases, effective price stabilization policies, and insights from Indonesia's past growth experience. The final chapter draws on the findings of the previous chapters and suggests a development strategy for Indonesia in the context of high commodity prices. This section summarizes the contents of the chapters and their main findings.

Bibliographic Details

Main Author:	World Bank
Format:	Foreign Trade, FDI, and Capital Flows Study biblioteca
Language:	en_US
Published:	World Bank, Jakarta 2010-12
Subjects:	agricultural commodity, agricultural prices, average price, BANK OFFICE, best practices, business climate, business indicators, buyers, capabilities, cereal prices, Chamber of Commerce, Commerce, commodities, commodities prices, Commodity, commodity boom, commodity exports, Commodity Futures, commodity markets, Commodity Price, Commodity Price Index, Commodity Prices, commodity production, competitiveness, consumer prices, Copyright, Correlation matrix, currency, developing countries, development of knowledge, disposable income, domestic economy, Domestic market, domestic markets, Domestic price, domestic prices, Economic Cooperation, economic dynamism, energy prices, exchange rate, exchange rates, expenditure, expenditures, export earnings, Export growth, export markets, export promotion, exposure, factor prices, Factor Productivity, factors of production, financial crisis, food commodities, food commodity, food price, Food Prices, Foreign Direct Investment, foreign exchange, foreign investment, forward contracts, future price, Futures, futures market, Futures Trading, global economy, global export, global markets, Government bond, government intervention, government policies, government revenue, government revenues, Gross Domestic Product, growth path, growth rates, human capital, income, income inequality, incomes, Inflation, Inflation rates, information networks, Infrastructure investment, innovation, insurance, international market, international markets, international policy, International Trade, investment climate, job creation, knowledge economy, knowledge industries, legal systems, manufacturing, market failures, Market Integration, market price, market stabilization, marketing, material, middlemen, natural resource, natural resources, output, outputs, petroleum prices, photo, photos, political stability, price changes, price controls, price dynamics, price fluctuations, price forecasts, price increase, price increases, Price Index, price inflation, price stabilization, price trends, price variations, price volatility, Primary commodity, private sector, private sectors, production processes, R&D, Regulatory Agency, regulatory environment, result, Results, retail, retail prices, Sale, sales, savings, social safety net, stabilization policies, Stock Exchange, stock market, stocks, Substitution, supermarkets, surplus, sustainable development, sustainable economic growth, tax, Thin markets, time periods, training course, transaction, transaction costs, transmission, video, video-conference, warehouse, World market, world markets, World Trade,
Online Access:	http://hdl.handle.net/10986/13276
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