The Increasing Price of Petrol In Indonesia

The issue about the increasing price of petrol has made quite a shock to most of Indonesian people. People seemed to presume the negative effects that are coming. What they did not realize is that the government made these decisions based on a long consideration of the positive impacts economically, politically, and socially.

Economically, the increased price of petrol will increase peoples buying power, because it will also lift other products price and people will have no choice but to purchase them to meet their daily needs. Without them realizing, their buying power will also rise, thus, the standard bar of poverty will somehow escalate. On the other hand, the rising price of petrol will contribute more to national income also cover expenses and debts.

In a political view, this also has positive effects. People may not realize the long-term benefits of the policy, but once they do, then the trust for the government will somehow gain. Their credibilty as rulers and regulators - which is doubted by the people so far - will be shown through the countrys economic growth and stability as this is the long-term aftermath of the policy.

Although they are not too prominent, the increasing price of petrol also has social effects. So far, Indonesian people are too spoiled with the subsidies. Reducing subsidies will make people more struggle. At a glance, this may seem negative, but this can be something good for Indonesian people mentality as they are forced to work harder for their lives. Moreover, the youth generation can be motivated to work as a team and be more innovative at making alternative energy sources.

In conclusion, despite all the negative effects that has been frightening Indonesian people, governments policy to increase the price of petrol also has many positive effects to the people and to the country.