ANALYSIS OF FUEL OIL PRODUCTION AND FUEL PRICES ON POVERTY IN INDONESIA

Abstract

This study analyzed the effect of fuel oil (BBM) production 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 research is the VECM model (Vector Error Correction Model) using the Eviews 10 program. The results of this research show that in the short-term fuel and fuel prices have a positive and insignificant effect on poverty.  In the long term, fuel has a positive and significant effect on poverty, while fuel prices have a negative and insignificant effect on poverty.