GROUP 2

MINI PROJECT RESEARCH

LITERATURE REVIEW
“The Impact of Rising Fuel Prices on Public Transportation Fares
and Foodstuff for Students Away from Home”
 OUR TEAM

Azzahra
Magfira Rumiani Dwi
Meyditha
Almutmainna Hartini
Salsabila
210502500008 210502501008
210502501011

Santi Amelia Muh Khalil

Putri Fattah
210502501002 210502502011
 Definition of Impact

Impact is the effect of each person's decision making or superiors to an organization or company that
usually has its own impact such as positive and negative impacts. Impact according to the KBBI is a
collision or influence that have consequences, both positive and negative. Impact is the final result or
result arising from doing an act or work which has an influence positive for the better or negative which
has a bad influence.

The impact according to Waralah Rd Cristo quoted by (Hariyati 2015) is something that
The result of doing something can be positive or negative.
 Definition of Inflation

Furthermore, according to Dwi Eko Waluyo, inflation is a form of economic

disease that often arises and is experienced in almost all countries. The tendency
of rising prices in general and occurs continuously.

Sadono Sukirno said inflation is a process of increasing prices prevailing in an

economy.

According to Alma (2011), price is a monetary unit or other measure (including

other goods and services) that are exchanged in order to obtain ownership rights
or use of goods and services so as to lead to consumer satisfaction.

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 Definition of Transportation

• Transportation is transfer of people or goods from one place to another

by using a vehicle driven by human or machine. Transportation
very important for human because it makes it easier for humans to
perform daily activities.

• According to Utomo, transportation is the transfer of goods and people from

place to place destination.

• Meanwhile, according to Sukarto,transportation is the movement of one place

to another with using means of transport, good powered by energy humans,
animals (horses, cows, buffalo), or machine. Transportation concept based on
travel (trip) between origin and destination (destinations).

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The fuel is any material that can converted into energy. Usually fuel contains
energy heat that can be released and manipulated. Most ingredients fuel is
used by humans through combustion process (redox reaction) where the fuel
will be release heat after reacts with oxygen in the air.

Fuel is needed in everyday life that is for our vehicles such as motorcycles
which we use every day for traveling and also public transportation use
gasoline / Premium to deliver people the desired place.

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 Definition of Food

According to Soekirman, food is anything that come from biological and water sources. Whether processed or not,
intended as food or drink for consumption humans, including food additives, food raw materials, and other materials
used in the preparation process for processing, and or the manufacture of food or drink. Food is
one of the most important components in life and life. Food includes agriculture, animal husbandry, processing
environment, food technology, production and food safety.

The definition of food according to the Indonesian government regulation number 28 year 2004 is everything that
comes from biological sources and water, both treated and untreated, which intended as food or drink for
consumption humans, including food additives, food raw materials, and other materials used in the preparation
process, processing, and or manufacture of food or beverages
 1.
Transition
Theory of the Impact of Rising Fuel Prices

The increase in the price of fuel oil has had a lot of impact on the people of Indonesia such as

Headline
participating in the increase in the price of goods and services, hampering community production due to
the increase prices, declining people's purchasing power and inflation.

Meanwhile, according to (Nizar 2012), one of the impacts of rising fuel prices is the occurrence of
Let’sbystart
inflation because it is followed withinthe
an increase firstofset
the price ofproducts.
other slides Inflation according to
(Aslami 2015) causes general continuous increase in goods and increase in operating costs
affect the exchange rate of the country's currency.
“The increase in fuel prices of around Rp. 2,500 will be felt by the middle and
lower classes. The reason is, the impact of the increase in fuel prices will result in
many things," said Arin, a lecturer and economic expert at UM Surabaya.Arin
said that the increase in fuel prices will have an impact on the middle and lower
classes of society.

First, there is a decrease in purchasing power in the short term because the income
effect has decreased in real terms, although the burden will differ according to
household income class. Especially the lowest/poor household groups who do not
have sufficient space to deal with short-term cashflow problems.

"Secondly, the simultaneous increase in fuel prices will increase the prices of
other basic commodities, which is certainly burdensome for the lower middle
class who are still in the process of economic recovery after being affected by the
Covid-19 pandemic," Arin added, Tuesday (6/9/22).
 Third, the social aspect of society is to encourage an increase in the unemployment rate.
The reason is that fuel is the basic material for the company's operations, with an
increase in prices it will burden production costs. For consideration of production
efficiency, the choice that must be taken by the company is to stop the process of
recruiting new employees until they are forced to terminate their employment (PHK).
This has the potential to increase the unemployment rate.

"Fourth, with the increase in the unemployment rate, it will also lead to an increase in
Indonesia's poverty rate," he added.
Arin explained that the BPS data as of March 2022 showed the poverty line had
increased by 3.975% compared to September 2021 or to around Rp. 505,469.

"So it is not wrong if the conditions arising from the increase in fuel prices encourage
demand for compensation policies, such as BLT (Direct Cash Assistance) and BSU
(Wage Subsidy Assistance) as a form of compensation for rising fuel prices," he said.

Meanwhile, according to Arin, for the upper middle class, the increase in fuel prices does
not have a significant impact, but they still experience a decrease in disposable income
or income that is ready to be spent.
 Previous Research

Based on the results of previous research (Ikhsan, Dartanto, and Usman 2005) said that
The price increase that was most affected by the increase in fuel prices was the transportation sector
and the transportation sector construction. The transportation sector experienced a price increase of 2.8
to 4.2 percent, while the construction sector experienced a 2.04 percent price increase.

Based on previous research (Maryono, Hamzah 2020), that the rising price of materials
Burning Oil has no impact when fishermen want to catch fish, but it is very important
an impact on the selling price of fish which increased by 13 percent on average, operational costs
increased by 27.51 percent and the proportion of fuel to the average total cost increased by 4.99
percent. And affect spending households, which increased by 12.37 percent, while income also
experienced an increase of 15.23 percent.

Based on previous research belonging to (Said 2015) said that the increase in fuel
to changes in household consumption patterns such as food expenditure before the spike
BBM, which is 63.8 percent, while after the soaring fuel price it rose to 79.7 percent
with a percentage increase of 15.9 percent.

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 Previous Research

Meanwhile, according to previous research (Kamal 2015) said that rising prices Fuel has an effect
on rising prices for nine basic ingredients or basic necessities, including the impact positive by 28
percent and a negative impact of 72 percent which can be concluded that the increase Fuel prices
have a negative impact on the people of Makassar. According to research (Minarsih 2012) the
impact of rising fuel prices is the possibility of demonstrations from the community who do not
agree with the decision government, not to mention the clashes between protesters and security
which in the end is a meaningless thing.

Meanwhile, according to previous research belonging to (Main 2013), said that the impact of rising
fuel prices to the community, namely increasing poverty and the existence of implementation of
compensation from the government such as BLSM and poor rice.
THANKS!
Any questions?

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