Determinant of Fuel Consumption in Indonesia

Abstract

Fuel consumption in Indonesia is increasing due to rising incomes, the number of motor vehicles in Indonesia. The purpose of this study was to determine the effect of fuel price policy, motor vehicles (motorcycles), per capita income on the consumption of fuel (Premium). The object of this study is the fuel consumption in the Republic of Indonesia period 1985-2014. The design of this research study with a quantitative approach. Analyzed using Multiple Linear Regression Ordinary Least Square method (OLS). Based on the results of this study concluded that the pricing policies have a significant effect on the consumption of premium, per capita income has positive influence on consumption of premium, the number of motorcycles positive effect on premium consumption, as well as fuel prices, per capita income, and the number of motorcycles simultaneously positive effect on consumption of premium.