Title:
THE INCREASE IN FUEL PRICES AND THE PROBLEMS FOR THE ECONOMY

Authors:
Harnida Wahyuni Adda ,Indonesia

Abstract:
This study aims to analyze the impact of the increase in fuel prices on the Indonesian economy. This study used qualitative methods to analyze the problem of increasing fuel prices in Indonesia and its impact on the economy. Data were collected through observation, interviews, and documentation. Interviews were conducted with the public and business actors affected by rising fuel prices in Indonesia. Data were analyzed using interactive analysis including data reduction, data presentation, and drawing conclusions. The results showed that the increase in fuel prices in Indonesia has a negative impact on the economy. This can be seen from the increase in the number of unemployment, the increase in the price of basic needs, the increase in the cost of producing goods and services (in and out of town transportation services), the increase in inflation, decreasing real salary and household consumption, and encouraging requests for compensation policies such as Direct Cash Assistance and Wage Subsidy Assistance as a form of compensation for rising fuel prices.