The Impact of Fuel Oil Price Fluctuations on Indonesia's Macro Economic Condition

Authors

  • Akhmad Akhmad Universitas Muhammadiyah Makassar
  • Buyung Romadhoni Universitas Muhammadiyah Makassar
  • Kasnaeny Karim Sekolah Tinggi Ilmu Manajemen Nitro Makassar
  • Muhammad Jibril Tajibu Fakultas Ekonomi dan Bisnis Universitas Hasanuddin
  • Muhammad Syukur Fakultas Ilmu Sosial Universitas Negeri Makassar

Abstract

Since the beginning of the new order government up to now, Indonesia's economic development constantly influences by fluctuation in fuel oil price. This paper aims to know the impact of fuel oil price change on economic growth, inflation, and poverty in Indonesia using Vector Auto Regression (VAR) method. Data used in the research are quarterly time series data for 1980-2017 period. The research result indicates that an increase in fuel oil price gives negative impact on Indonesia's economy. Therefore, the government as well as all stakeholders needs to cooperate to reduce the negative impact of fuel oil price on economy.

Keywords:  Fuel Oil price, Economic Growth, Inflation, Poverty

JEL Classifications: C32, Q43, Q48

DOI: https://doi.org/10.32479/ijeep.7470

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Author Biographies

Akhmad Akhmad, Universitas Muhammadiyah Makassar

Economics

Buyung Romadhoni, Universitas Muhammadiyah Makassar

Manajemen

Kasnaeny Karim, Sekolah Tinggi Ilmu Manajemen Nitro Makassar

Manajemen

Muhammad Jibril Tajibu, Fakultas Ekonomi dan Bisnis Universitas Hasanuddin

Economics

Muhammad Syukur, Fakultas Ilmu Sosial Universitas Negeri Makassar

Sociology

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Published

2019-02-14

How to Cite

Akhmad, A., Romadhoni, B., Karim, K., Tajibu, M. J., & Syukur, M. (2019). The Impact of Fuel Oil Price Fluctuations on Indonesia’s Macro Economic Condition. International Journal of Energy Economics and Policy, 9(2), 277–282. Retrieved from https://www.econjournals.com/index.php/ijeep/article/view/7470

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