Abstract

The policy of raising the price of fuel oil (BBM) again by the Government of Indonesia is causing problems. The increase in fuel prices implies an increase in commodity prices. The increase in the price of goods has an effect on purchasing power. Low or high purchasing power affects the level of people's economic welfare. This study aims to determine the effect of rising fuel prices on the level of economic welfare of the people of West Kalimantan, as well as to provide recommendations for solutions and plans for economic development to local governments. The research model is a time-series and cross-section model from panel data regression analysis. Based on this study, it was concluded that there was an influence from the increase in subsidized and non-subsidized fuel prices on Household Consumption Expenditure (PKRT) in West Kalimantan. This indicates that there are ongoing economic activities that affect economic growth in West Kalimantan.

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