The relationship between consumption and imports of fuel oil in Indonesia
This study examines the short- and long-run relationship between consumption and imports of fuel oil in Indonesia using a time series data spanning from 1988 to 2018. A Vector Error Correction Model (VECM) approach has been used in examining the short- and long-term conditions designed based on...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2020
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| Online Access: | http://journalarticle.ukm.my/16877/ http://journalarticle.ukm.my/16877/1/jeko_54%282%29-11.pdf |
| _version_ | 1848814166224142336 |
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| author | Aimon, Hasdi Dwita, Sany Susanto, Perengki |
| author_facet | Aimon, Hasdi Dwita, Sany Susanto, Perengki |
| author_sort | Aimon, Hasdi |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | This study examines the short- and long-run relationship between consumption and imports of fuel oil in Indonesia
using a time series data spanning from 1988 to 2018. A Vector Error Correction Model (VECM) approach has been
used in examining the short- and long-term conditions designed based on the theoretical framework of the Keynesian
consumption model. The results show that the import and price of fuel oil significantly affect fuel oil consumption
in Indonesia. Notably, fuel oil imports and prices disrupt the equilibrium of fuel oil consumption in the short term,
although, in the long term, the consumption returns to the equilibrium. Moreover, fuel oil consumption and the exchange
rate also significantly affect fuel oil imports in Indonesia. Specifically, the exchange rate disrupts fuel oil imports in the
short term, then returns to the equilibrium in the long term. Accordingly, the Indonesian government needs to manage
fuel oil imports and exchange rate stability to eliminate short-term disruptions in Indonesia’s fuel oil imports. |
| first_indexed | 2025-11-15T00:29:46Z |
| format | Article |
| id | oai:generic.eprints.org:16877 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:29:46Z |
| publishDate | 2020 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:168772021-06-24T16:29:30Z http://journalarticle.ukm.my/16877/ The relationship between consumption and imports of fuel oil in Indonesia Aimon, Hasdi Dwita, Sany Susanto, Perengki This study examines the short- and long-run relationship between consumption and imports of fuel oil in Indonesia using a time series data spanning from 1988 to 2018. A Vector Error Correction Model (VECM) approach has been used in examining the short- and long-term conditions designed based on the theoretical framework of the Keynesian consumption model. The results show that the import and price of fuel oil significantly affect fuel oil consumption in Indonesia. Notably, fuel oil imports and prices disrupt the equilibrium of fuel oil consumption in the short term, although, in the long term, the consumption returns to the equilibrium. Moreover, fuel oil consumption and the exchange rate also significantly affect fuel oil imports in Indonesia. Specifically, the exchange rate disrupts fuel oil imports in the short term, then returns to the equilibrium in the long term. Accordingly, the Indonesian government needs to manage fuel oil imports and exchange rate stability to eliminate short-term disruptions in Indonesia’s fuel oil imports. Penerbit Universiti Kebangsaan Malaysia 2020 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/16877/1/jeko_54%282%29-11.pdf Aimon, Hasdi and Dwita, Sany and Susanto, Perengki (2020) The relationship between consumption and imports of fuel oil in Indonesia. Jurnal Ekonomi Malaysia, 54 (2). pp. 125-136. ISSN 0127-1962 https://www.ukm.my/fep/jem/content/2020-2.html |
| spellingShingle | Aimon, Hasdi Dwita, Sany Susanto, Perengki The relationship between consumption and imports of fuel oil in Indonesia |
| title | The relationship between consumption and imports of fuel oil in Indonesia |
| title_full | The relationship between consumption and imports of fuel oil in Indonesia |
| title_fullStr | The relationship between consumption and imports of fuel oil in Indonesia |
| title_full_unstemmed | The relationship between consumption and imports of fuel oil in Indonesia |
| title_short | The relationship between consumption and imports of fuel oil in Indonesia |
| title_sort | relationship between consumption and imports of fuel oil in indonesia |
| url | http://journalarticle.ukm.my/16877/ http://journalarticle.ukm.my/16877/ http://journalarticle.ukm.my/16877/1/jeko_54%282%29-11.pdf |