Journal of Social Research
Vol. 2 No. 3 (2023): Journal of Social Research

The Impact of the Drastic Increase in Fuel Oil (Bbm) Prices

Bilqis Farikha Rizki Al Fajrin (Universitas Indraprasta PGRI)
Aziziyah Zahra Jinan (Universitas Indraprasta PGRI)
Putri Syahfitri Auliyah (Universitas Indraprasta PGRI)
Annisa Fitri Wulandari (Universitas Indraprasta PGRI)
Nurma Tambunan (Universitas Indraprasta PGRI)



Article Info

Publish Date
02 Feb 2023

Abstract

Fuel Oil (BBM) is a commodity that plays a vital role in all economic activities. The direct impact of this change in oil prices is a change in operating costs that results in the level of profit of direct investment activities occurring. In simple terms, the purpose of investing is to maximize prosperity through the maximization of profits, and investors always try to invest in efficient and safe investments. The increase in fuel prices not only increases the burden on small communities in general but also for the business world in particular. The surge in the price of Mintak Fuel (BBM) is considered to have a real effect on economic conditions in Indonesia. High oil prices turned out to be unfavorable to the economy of any country in Asia, including Indonesia. The increase in fuel prices in Indonesia is not only caused by the high increase in world oil prices, but also due to the domestic undersupply when compared to its demand. The amount of fuel subsidies such as in Indonesia, which can drain the state budget, is also considered as an excuse for the government to increase fuel prices in the country. The impact on various industrial sectors can lead to high production and operating costs. Moreover, of course, this increase in fuel prices will also have exponential implications for Indonesia's macroeconomic fundamentals.

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Journal Info

Abbrev

ijsr

Publisher

Subject

Humanities Computer Science & IT Economics, Econometrics & Finance Education Social Sciences

Description

The Journal of Social Research is a double blind peer-reviewed academic journal and open access to social and scientific fields. The journal is published monthly by International Journal Labs. The Journal of Social Research provides a means for sustained discussion of relevant issues that fall ...