The Impact of the One Price Fuel Oil (BBM) Program on the 3T Rural Economy in Indonesia

Abstract

The One Price Fuel Policy is a positive step to reduce fuel price inequality throughout Indonesia. In the 6
years of implementing this program (2017-2022), the BBM Distribution Business Entity has built 423
distributors throughout Indonesia. The success of the One Price Fuel program is still being debated. So this
research wants to examine further the influence of one-price fuel on the rural economy in the 3T region of
Indonesia with a research focus on the number of small industries and economic facilities including
markets, supermarkets, grocery stores, food stalls, restaurants, and hotels. Researchers used a Difference
in Difference (DiD) regression model with a staggered events approach and two strategies to control non-
intervention factors that influenced the results. This research found that in certain case scenarios, this
policy was implemented gradually after one year of implementation, causing a causal impact on the
number of grocery stores and food stalls, and in other outcomes, the results could not be validated because
the assumptions had not been met.