Indonesia | Total natural resources rents (% of GDP)

Total natural resources rents are the sum of oil rents, natural gas rents, coal rents (hard and soft), mineral rents, and forest rents. 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 | Total natural resources rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 3.60940309
1971 3.37685951
1972 4.98266891
1973 9.95168218
1974 20.46714115
1975 17.37419108
1976 17.72737921
1977 18.25613332
1978 15.77619582
1979 34.92265509
1980 28.44435001
1981 19.4531583
1982 10.8694649
1983 14.01814359
1984 13.95064559
1985 13.07867296
1986 8.74391533
1987 12.14941111
1988 9.61090628
1989 11.80268069
1990 13.27364693
1991 8.36472421
1992 8.18443736
1993 6.63011643
1994 5.81546573
1995 6.18686042
1996 6.42800324
1997 5.99702078
1998 9.08504454
1999 7.86912944
2000 11.12573669
2001 9.29197183
2002 7.28595475
2003 7.14281188
2004 9.12075209
2005 10.32535316
2006 9.407229
2007 9.75766254
2008 11.1002865
2009 6.4259314
2010 7.13560902
2011 8.56311393
2012 5.94561486
2013 5.38990903
2014 4.79162104
2015 3.08136736
2016 2.66818994
2017 3.08016177
2018 4.21663374
2019 3.23583968
2020 2.43866732
2021 5.15704008
2022

Indonesia | Total natural resources rents (% of GDP)

Total natural resources rents are the sum of oil rents, natural gas rents, coal rents (hard and soft), mineral rents, and forest rents. 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