Commodities - Indonesia

Indonesia

The nominal value in the Commodities market is projected to reach US$197.50bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.52% resulting in a projected total amount of US$223.70bn by 2029.
The average price per contract in the Commodities market amounts to US$0.00 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 77.05m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Indonesia has been experiencing significant growth and development in recent years. Customer preferences in the Indonesian Commodities market are shifting towards more diverse investment options, with a growing interest in financial derivatives.

Investors are increasingly looking for ways to diversify their portfolios and manage risks effectively, leading to a rise in trading activities in the market. Trends in the market show a noticeable increase in the trading volume of Commodities derivatives in Indonesia. This trend can be attributed to the growing awareness among investors about the potential returns and hedging opportunities offered by these financial instruments.

Additionally, advancements in technology have made it easier for investors to access and trade in the Commodities market. Local special circumstances, such as the government's efforts to promote the financial sector and attract foreign investments, have contributed to the growth of the Commodities market in Indonesia. Regulatory reforms and initiatives to improve market infrastructure have created a more conducive environment for trading activities, attracting both domestic and international investors to participate in the market.

Underlying macroeconomic factors, including Indonesia's economic growth and stability, have also played a crucial role in the development of the Commodities market. The country's strong economic fundamentals and increasing disposable income levels have boosted investor confidence and interest in financial markets, including Commodities trading. Overall, the Commodities market in Indonesia is poised for further growth and expansion as investors continue to seek alternative investment opportunities and the government remains committed to enhancing the overall market environment.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.