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

Received: 24 May 2015     Accepted: 29 May 2015     Published: 29 June 2015
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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.

Published in Earth Sciences (Volume 4, Issue 4)
DOI 10.11648/j.earth.20150404.11
Page(s) 129-145
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Mineral, Price Trend, Trade, Forecast, Economy

References
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Cite This Article
  • APA Style

    Ukar Wijaya Soelistijo, Pakerti Lutzow Anjani, Hanif Ikhsan Pratama, Hariono La Pili, Mixsindo Korra Herdyanti. (2015). Trend of Mineral Commodity Price and its Impact on the Indonesia Economy 1990-2025. Earth Sciences, 4(4), 129-145. https://doi.org/10.11648/j.earth.20150404.11

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    ACS Style

    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 Sci. 2015, 4(4), 129-145. doi: 10.11648/j.earth.20150404.11

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    AMA Style

    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 Sci. 2015;4(4):129-145. doi: 10.11648/j.earth.20150404.11

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  • @article{10.11648/j.earth.20150404.11,
      author = {Ukar Wijaya Soelistijo and Pakerti Lutzow Anjani and Hanif Ikhsan Pratama and Hariono La Pili and Mixsindo Korra Herdyanti},
      title = {Trend of Mineral Commodity Price and its Impact on the Indonesia Economy 1990-2025},
      journal = {Earth Sciences},
      volume = {4},
      number = {4},
      pages = {129-145},
      doi = {10.11648/j.earth.20150404.11},
      url = {https://doi.org/10.11648/j.earth.20150404.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.earth.20150404.11},
      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.},
     year = {2015}
    }
    

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  • TY  - JOUR
    T1  - Trend of Mineral Commodity Price and its Impact on the Indonesia Economy 1990-2025
    AU  - Ukar Wijaya Soelistijo
    AU  - Pakerti Lutzow Anjani
    AU  - Hanif Ikhsan Pratama
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    JF  - Earth Sciences
    JO  - Earth Sciences
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    EP  - 145
    PB  - Science Publishing Group
    SN  - 2328-5982
    UR  - https://doi.org/10.11648/j.earth.20150404.11
    AB  - 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.
    VL  - 4
    IS  - 4
    ER  - 

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Author Information
  • 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

  • Institute of Technology Bandung, Department of Mining Engineering, Faculty of Mining and Petroleum Engineering, Bandung, Indonesia

  • University of Halu Oleo, Department of Mining Engineering

  • University of Trisakti, Department of Mining Engineering, Faculty of Engineering, Jakarta, Indonesia

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