| Summary: | Indonesian�s dependency to world crude oil is one of the background for
Indonesian economists to highlight that world crude oil price will always
fluctuating. This phenomenon happened due to geopolitical situation among oil
exporting countries members. Based on previous research, the oil price shock is a
bad news to oil importing countries such as Indonesia. Increasing oil price will
bear bad effect as written on macroeconomic theory. The aim of this study to
analyze the impact of oil price shock on gross domestic product, exchange rate, oil
import, consumer price index, money supply. VAR has been employed in this
research.
The research explained no cointegration correlationamong variables. Oil
price shocks had positive effect on gross domestic product, and money supply.
Otherwise, there is negative effect available on exchange rate, money supply and
consumer price index. The mostly affected variablesin their variation by oil price
shocks are these 3, namely: money supply, oil import and consumer price index.
The result of this research show Indonesian economyless vulnerable to oil price
shocks along 12 years periode, due to non oil energy sector revenue.
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