How much does Indonesia’s economy rely on its natural resources?
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. 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. 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.
Indonesia’s reliance on natural resources
Indonesia’s economy has not relied on natural resources as much as others, such as Brunei and Kuwait. It’s natural resource rents have been on a downward trend over the past four decades.
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