Indonesia which is one of the oil suppliers receive a great impact in relation with the conflict that happen in Libya. The riot that happens in Libya start to spread up to the other country in the middle east, this incident really boost the price of the oil and straighten the Indonesian Rupiah for a while. in addition, reduced oil supplies from Libya and the prospect of a popular uprising spread in the energy-rich Middle East, has made the world oil prices increased to the highest record on wednesday since 2 years ago. Furthermore, in London and New York the price of the oil is reaching into 100 dollar Us per barrel that never happen since 2008. The increase of the oil price happens due to panicking from the oil suppliers in concern with the accident that happens in Libya.
In relation with Indonesia, they might be no impact in the short-term economics due to straighten in Indonesian Rupiah. Since this tragedy happens the price of rupiah is increase from Rp8875.00 to Rp8845.00 on 28 February 2011. According to Indonesian Secretary of the Treasury Agus DW Martowadojo they might be an increase of the price of Indonesian oil from 80 dollars US per barrel into 83 dollars US per barrel. In addition, he also stated that if the price of the oil keep increasing there might be also increase in the subsidize of the oil in Indonesia.
While in my opinion, if the price of the oil keep increasing from time to time and the Libya government could not handle their internal problem there might another global crisis happens. Even though we are an oil suppliers, Indonesia has more than 100 millions people that using oil and in certain circumstances for sure we are still import some oil in order to cover the demand of the country. Hence, it will also impact to the import goods to indonesia that will boost the price of the imported goods and also there might be and inflation that happens in indonesia. In relation with that, the Indonesian government really monitor on the price of the oil each and every second intended when the price of the oil boosting up again. More importantly, most of the imported and exported goods is really depending on US dollars when there is an increase or decrease in of the price of US dollars it does really matter to the internal economics problems in Indonesia.
If the price of the oil keep increasing. Do you think the government should increase the subsidize of the oil in Indonesia? Because this could be a huge financial burden to the government.(Indonesia has more than 100 millions people that using oil)
ReplyDeleteIn indonesia there are two different oil types which is the "premium" (octan 89) and "pertamax" (octan 95). The indonesian government are subsidize the lower type of the oil in order to help their citizens in running their life. In addition, Indonesian government also consider to stop the subsidize of the oil price but with indonesian standard of living that can be consider as quiet low force the government to keep on subsidizing the price of the oil. There is one way that the government do in minimising the use of oil which is by compile their citizens to use public transportation. Indonesian government has start to re-construct their public transpotation so that it is suitable to be use by their citizens. The price of the oil will be subsidize by the government until the government finish the re-construction of their public transportation.
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