The price of gasoline in Indonesia has been rising steadily each year until September 2022 due to decreasing global availability and supply chain issues exacerbated by the pandemic and war in Ukraine. This inflation in gas prices impacts migration patterns as people may choose public transportation over personal vehicles or migrate less. The Indonesian government previously provided subsidies to address rising costs but ended the program as it drained too much from state budgets given the large population. Potential solutions include promoting public transit use, increasing domestic fuel production from local raw materials, and shifting to electric vehicles.
The price of gasoline in Indonesia has been rising steadily each year until September 2022 due to decreasing global availability and supply chain issues exacerbated by the pandemic and war in Ukraine. This inflation in gas prices impacts migration patterns as people may choose public transportation over personal vehicles or migrate less. The Indonesian government previously provided subsidies to address rising costs but ended the program as it drained too much from state budgets given the large population. Potential solutions include promoting public transit use, increasing domestic fuel production from local raw materials, and shifting to electric vehicles.
The price of gasoline in Indonesia has been rising steadily each year until September 2022 due to decreasing global availability and supply chain issues exacerbated by the pandemic and war in Ukraine. This inflation in gas prices impacts migration patterns as people may choose public transportation over personal vehicles or migrate less. The Indonesian government previously provided subsidies to address rising costs but ended the program as it drained too much from state budgets given the large population. Potential solutions include promoting public transit use, increasing domestic fuel production from local raw materials, and shifting to electric vehicles.
Group Member: El, Aisyah, Sultan, Althaf THE PROBLEM The price of gasoline in Indonesia rose steadily from year to year till September 2022. Although Indonesia supplies the raw materials needed to produce the gasoline/gas, there isn't enough of it to supply fuel for everyone to use, hence Indonesia must import fuel from other nations. But because the availability of fuel and the raw materials used is decreasing year after year, making them more limited, as their prices are rising. Not only because fuel/oil are decreasing but it could also be to do with the previous pandemic, since the demand for oil fell so too as the supplies then when the pandemic began to ease up again people started to get more money and also start to travel more. But there's a bit of a problem, oil/fuel supplies are starting to rise, but the recent war in Ukraine made some countries stop buying fuels from Russia and because of this some countries might turn to Indonesia in buying their fuels. The connection of the problem to migration: Because of this problem, the people might be able to migrate not by personal vehicles, but by public transportation. There might also be less people who migrate in this period of time. Or they don’t care and just buy the gas without hesitation. What did the government do: Because of the inflation on the gas prices, the government provide subsidy, by using the APBN, but as the population of Indonesia is not small, they took out too much from the APBN and more than they thought they would, so they stopped the subsidy program. How to Resolve this Problem? How to resolve this problem (if needed): •Motivate the society to use public transportation •Since Indonesia provides the basic raw materials to make the fuel and exports it, why not try to make our own fuel, then export it. This can decrease the inflation in the price of the gas. •Rather than buying new cars that use gas, we can choose to buy the electric one to save more money from gas. THANK YOU