Analysis of Road Infrastructure and Fuel Oil Consumption on Economic Growth in Indonesia: An ARDL Model Approach

Abstract

This study aims to analyze the effect of road length and fuel oil consumption on economic growth in Indonesia. The data used are time series data covering the period 2005–2023, obtained from Badan Pusat Statistik and the Indonesian Oil and Gas Statistics published by the Ministry of Energy and Mineral Resources. The analytical method employed is the Autoregressive Distributed Lag (ARDL) model. The estimation results indicate that in the short run, road length has a negative effect on economic growth, while fuel consumption has a positive effect. However, in the long run, road length positively influences economic growth, whereas fuel consumption has a negative impact.