Analisis Pengaruh Pengurangan Subsidi Bahan Bakar Minyak (BBM) terhadap Kemiskinan di Indonesia

Abstract

Subsidy fuel price (BBM) in Indonesia has been implementated since 1970’s, along with increasing of population and economic growth have impacted directly to total energy demand. It increased a budget allocated of subsidy fuel price in government expenditure for years and forced the government to reduced it repeatedly. The aim of this study is to analyse impact of decreasing subsidy fuel price to poverty in Indonesia. This study used simultaneous equation model with SLS 2 method (Two Stage Least Square Method) and secondary data time series with observation period ranging from 1983-2011. Results of research showed that if subsidy fuel price was reduced by 10%, it would increased 9.046% of inflation, 0.097% of poverty population, and 0.220% unemployeement. Also Gross Domestic Product would decreased by 0.093%.