INDONESIA : Summary analysis of material flows and materials intensity indicators
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Indonesia is an HDD country, with DMC per capita in 1970 at a low base of around 2.5 tonnes per
capita and remaining relatively low in 2008, at 5.4 tonnes per capita, a little more than half the World...
and regional per capita levels (Figure 12 (a)). Some fifteen years of very low growth from 1970 gave
way to a period of rapid growth from 1985 to 1996, which saw DMC per capita increasing at a
compound rate of 4.8% p.a. A period of contraction preceded and continued over the period of the
AFC, followed by a rebound, then a further, recent period of contraction. Growth in DMC per capita
since 1996 has averaged 1.3% p.a. The four category breakdown of DMC per capita in Figure
12 (d) shows that the relative volatility in Indonesia’s DMC per capita is mainly due to fluctuations
in the construction minerals and metal ores and industrial minerals categories. Indonesia shows a
strong shift away from biomass and towards minerals/fossil fuels over the period 1970 to 2008, but
is a relatively unusual case in demonstrating a reversal of this trend in recent years. The degree of
fluctuation seen in metal ores may be in large part an effect of the large proportion that the production
from one single mine (Grasberg) contributes to the Indonesian total, and the fluctuations of production
of different commodities (copper, gold, and silver) from that mine. Indonesia’s importance as a net
supplier of fossil fuels to other countries continues to grow rapidly in gross terms; however it remains
a net importer of petroleum (see online database).
MI improved very rapidly in Indonesia from 1970 to 1985, then entered a period of fluctuation, with
only modest improvement overall from 1985 to 2008. Improvements since 2005 merely compensated
for a deterioration from the late 1990s. A partial explanation for the latter may be the rapid increase in
the share of relatively low value coal compared to high value petroleum in DE, over that period, and
Indonesia’s transition to being a net importer of petroleum.
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