Daftar Isi:
  • Inequality and poverty problems in Indonesia continue to be the main government's target to realize the welfare of society, high income inequality can affect the low purchasing power of society and causing poverty. Purchasing power is influenced by nonmonetary factors such as fuel prices and basic electricity tariffs. The purpose of this article is to examine the effects of the fuel prices increase and the basic electricity tariffs on the household income inequality and poverty in Indonesia, both in short and long term. The analysis model used in this study refers to the basic model of multiple linear regression equation with ECM method in estimating short-term and long-term relationship. Result obtained is wether in short-term or long term, variable that used in this study significantly influence the household inequality and poverty in Indonesia.