Oil Price and Exchange Rate Shocks Drive Food Price Increase in Indonesia
This study looked at how external factors like oil prices and exchange rates affect food prices in Indonesia. They used data from 1998 to 2015 and a special model to analyze the relationship. The results showed that when oil prices go up and the Indonesian currency loses value, food prices also go up in the long term. This impact is not as strong in the short term. The study suggests that the government needs to address issues like rising oil prices and currency depreciation to keep food prices stable. It also warns against relying too much on food imports because exchange rate movements can greatly influence prices.