Indonesia | Mineral rents (% of GDP)

Mineral rents are the difference between the value of production for a stock of minerals at world prices and their total costs of production. Minerals included in the calculation are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. 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 | Mineral rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.27448183
1971 0.32764619
1972 0.31514774
1973 0.59570842
1974 0.79365268
1975 0.38178267
1976 0.37379061
1977 0.42748971
1978 0.42381423
1979 0.66685289
1980 0.54986821
1981 0.34016216
1982 0.22625165
1983 0.2638779
1984 0.26162133
1985 0.25417133
1986 0.18770848
1987 0.29089192
1988 1.02462358
1989 1.03744644
1990 0.71264246
1991 0.31932723
1992 0.22800844
1993 0.13917162
1994 0.20011911
1995 0.70827856
1996 0.63098242
1997 0.55417168
1998 1.3563432
1999 0.97724611
2000 0.99034994
2001 0.96840976
2002 0.85660374
2003 0.91875526
2004 1.01171112
2005 1.58686661
2006 1.77357767
2007 2.65498358
2008 1.0246884
2009 1.41195378
2010 1.51452959
2011 1.37848885
2012 0.57708888
2013 0.72002109
2014 0.29103167
2015 0.23191256
2016 0.32559844
2017 0.33869626
2018 0.66493103
2019 0.52763358
2020 0.47218732
2021 1.90957956
2022

Indonesia | Mineral rents (% of GDP)

Mineral rents are the difference between the value of production for a stock of minerals at world prices and their total costs of production. Minerals included in the calculation are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. 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