World Bank2013-04-302013-04-302010-12https://hdl.handle.net/10986/13276Indonesia 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.en-USCC BY 3.0 IGOagricultural commodityagricultural pricesaverage priceBANK OFFICEbest practicesbusiness climatebusiness indicatorsbuyerscapabilitiescereal pricesChamber of CommerceCommercecommoditiescommodities pricesCommoditycommodity boomcommodity exportsCommodity Futurescommodity marketsCommodity PriceCommodity Price IndexCommodity Pricescommodity productioncompetitivenessconsumer pricesCopyrightCorrelation matrixcurrencydeveloping countriesdevelopment of knowledgedisposable incomedomestic economyDomestic marketdomestic marketsDomestic pricedomestic pricesEconomic Cooperationeconomic dynamismenergy pricesexchange rateexchange ratesexpenditureexpendituresexport earningsExport growthexport marketsexport promotionexposurefactor pricesFactor Productivityfactors of productionfinancial crisisfood commoditiesfood commodityfood priceFood PricesForeign Direct Investmentforeign exchangeforeign investmentforward contractsfuture priceFuturesfutures marketFutures Tradingglobal economyglobal exportglobal marketsGovernment bondgovernment interventiongovernment policiesgovernment revenuegovernment revenuesGross Domestic Productgrowth pathgrowth rateshuman capitalincomeincome inequalityincomesInflationInflation ratesinformation networksInfrastructure investmentinnovationinsuranceinternational marketinternational marketsinternational policyInternational Tradeinvestment climatejob creationknowledge economyknowledge industrieslegal systemsmanufacturingmarket failuresMarket Integrationmarket pricemarket stabilizationmarketingmaterialmiddlemennatural resourcenatural resourcesoutputoutputspetroleum pricesphotophotospolitical stabilityprice changesprice controlsprice dynamicsprice fluctuationsprice forecastsprice increaseprice increasesPrice Indexprice inflationprice stabilizationprice trendsprice variationsprice volatilityPrimary commodityprivate sectorprivate sectorsproduction processesR&DRegulatory Agencyregulatory environmentresultResultsretailretail pricesSalesalessavingssocial safety netstabilization policiesStock Exchangestock marketstocksSubstitutionsupermarketssurplussustainable developmentsustainable economic growthtaxThin marketstime periodstraining coursetransactiontransaction coststransmissionvideovideo-conferencewarehouseWorld marketworld marketsWorld TradeWorld Bank10.1596/13276