Determinant Analysis Of Household Income Inequality And Poverty In Indonesia

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.