Energy Subsidy and Price Dynamics In Indonesia

The downward trend of the world oil prices in recent years has put profound consideration among countries to reform energy subsidy policies. Examination inflationary impact become essential due possible welfare consequences. This study aims reveal on Indonesia by utilizing autoregressive distributed lag (ARDL) method capture short-run dynamics and long-run cointegration between dependent independent variables period 1980-2017. finding this research indicated that is significant for periods. Regarding result, government advised carefully applying policy gradually protecting vulnerable poor households.