Indonesia | Coal rents (% of GDP)

Coal rents are the difference between the value of both hard and soft coal production at world prices and their total costs of production. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
Republic of Indonesia
Records
63
Source
Indonesia | Coal rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971 0.00019559
1972 0.00017237
1973 0.00016344
1974 0.00173504
1975 0.00717408
1976 0.00555703
1977 0.00552665
1978 0.00435123
1979 0.00444663
1980 0.00602959
1981 0.01059183
1982 0.01454649
1983 0.00828422
1984 0.01178113
1985 0.02655806
1986 0.01867742
1987 0.00355689
1988 0.0196998
1989 0.05470604
1990 0.06388551
1991 0.06500508
1992 0.06140976
1993 0.01668575
1994 0.01637537
1995 0.09289852
1996 0.04926293
1997 0.03130254
1998 0.15284449
1999 0.06265389
2000 0.14548205
2001 0.54884167
2002 0.20824106
2003 0.17552895
2004 1.44210635
2005 1.04941967
2006 1.20537646
2007 1.7521127
2008 3.71627865
2009 1.37823799
2010 2.01693299
2011 3.04471491
2012 1.76253579
2013 1.30653584
2014 1.07149977
2015 0.61786778
2016 0.6562296
2017 0.85154558
2018 1.07176984
2019 0.80023454
2020 0.67187873
2021 1.22270967
2022

Indonesia | Coal rents (% of GDP)

Coal rents are the difference between the value of both hard and soft coal production at world prices and their total costs of production. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
Republic of Indonesia
Records
63
Source