UNIMAL Open Conference System, 2nd International Conference on Finance Economics and Business (ICOFEB)

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ANALYSIS OF FUEL OIL PRODUCTION AND FUEL PRICES ON POVERTY IN INDONESIA
Tia Wardani, Jariah Abu Bakar

Last modified: 2024-01-25

Abstract


This study was conducted to analyze the production of fuel oil (BBM) and fuel prices on poverty in Indonesia. This study uses secondary data and quantitative methods with the type of time series data from 1993-2022 obtained from the Central Bureau of Statistics and the Ministry of Mineral Resources (MEMR). The model used in this study is the ARDL (Auto Regressive Distributed Lagged) model using the Eviews 10 program. The results of this study show that the Granger causality test does not have a significant causal relationship between fuel and two-way poverty in accordance with the theory of short-term equilibrium and cointegration models. In the long-run equilibrium, it can be seen that fuel production has a positive effect on poverty, and fuel prices also have a positive impact on poverty levels in the long run.


Keywords


BBM, BBM Price and Poverty, Indonesia