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

Author

Listed:
  • Akhmad Akhmad

    (Fakultas Ekonomi dan Bisnis, Universitas Muhammadiyah Makassar, Indonesia,)

  • Buyung Romadhoni

    (Fakultas Ekonomi dan Bisnis, Universitas Muhammadiyah Makassar, Indonesia,)

  • Kasnaeny Karim

    (Sekolah Tinggi Ilmu Manajemen Nitro Makassar, Indonesia,)

  • Muhammad Jibril Tajibu

    (Fakultas Ekonomi dan Bisnis, Universitas Hasanuddin, Indonesia,)

  • Muhammad Syukur

    (Fakultas Ilmu Sosial Universitas Negeri Makassar, Indonesia.)

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.

Suggested Citation

  • Akhmad Akhmad & Buyung Romadhoni & Kasnaeny Karim & Muhammad Jibril Tajibu & Muhammad Syukur, 2019. "The Impact of Fuel Oil Price Fluctuations on Indonesia s Macro Economic Condition," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 277-282.
    • Handle: RePEc:eco:journ2:2019-02-32
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    References listed on IDEAS

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    Cited by:

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    2. Bulat Mukhamediyev & Zhansaya Temerbulatova, 2019. "The Impact of Oil Prices on the Global Competitiveness of National Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 45-50.
    3. Umar Tijjani Babuga & Niaz Ahmad Mohd Naseem, 2022. "Oil Price Change and Economic Growth: Evidence from Net Sub-Saharan Africa Oil Exporting Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 369-378, March.
    4. Buyung Romadhoni & Akhmad Akhmad, 2020. "Household Electricity Demand in South Sulawesi, Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 229-233.
    5. Milwan Milwan & Hary Kurniawan & M. Entang Adhy & Udin Udin, 2020. "Policy Implementation of One-Price Fuel Oil Distribution: An Empirical Study in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 294-301.
    6. Navaneetha Krishnan Balakrishnan & Yew Heng Teoh & Heoy Geok How & Thanh Danh Le & Huu Tho Nguyen, 2023. "An Experimental Investigation on the Characteristics of a Compression Ignition Engine Fuelled by Diesel-Palm Biodiesel–Ethanol/Propanol Based Ternary Blends," Energies, MDPI, vol. 16(2), pages 1-18, January.

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    More about this item

    Keywords

    Fuel Oil price; Economic Growth; Inflation; Poverty;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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