KISA INSTITUE : Journal of Economics, Accounting, Business, Management, Engineering and Society
Vol. 2 No. 1 (2025): KISA Institute: January 2025

Commodity Price Shocks and Regional Revenue Stability: Lessons for Local Governments

Raden Roro Fatma Sari (Universitas Sangga Buana YPKP)
Maya Ariyanti (Telkom University)



Article Info

Publish Date
29 Sep 2026

Abstract

This integrative review examines the following Indonesia-focused question: How can local governments in commodity-exposed Indonesian regions stabilize revenue and maintain essential expenditure when global commodity prices rise and fall? The analysis treats commodity prices as a conditional economic mechanism rather than a stand-alone headline indicator and evaluates how it interacts with regional revenue. For commodity prices, peer-reviewed research is read together with current official statistical and policy material, with Indonesia-specific evidence given priority and international studies used to clarify mechanisms. Across the reviewed material, the effect of commodity prices varies with exposure, timing, market structure, institutional arrangements, and the capacity of decision makers to adjust. The article therefore develops a mechanism-based interpretation that distinguishes first-round transmission, behavioral response, and boundary conditions for regional revenue. No primary survey, interview, firm observation, or regression estimate is manufactured for this commodity prices conceptual review; empirical claims remain attributed to their original sources. The resulting commodity prices framework supports differentiated measurement and identifies an Indonesia-specific research agenda for testing the proposed channels with more granular data.

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Journal Info

Abbrev

kisainstitute

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

KISA INSTITUE : Journal of Economics, Accounting, Business, Management, Engineering and Society is published by Kisa Institute plays a key role in advancing multidisciplinary knowledge. With monthly outputs, the journal serves as a vibrant platform to present and develop our understanding of various ...