Whether the Role of the Oil and Gas Sector, is Still Placed by the Government of Indonesia as a Support for Development Seen from the Macroeconomic Concept

The present study provide a robust investigation of how OPS affect the macroeconomy of Indonesia.For this purpose, five macroeconomic variables are used in the analysis, namely, government expenditure (GE), real GDP (RGDP), inflation (INFL), net exports (NXP) and real exchange rate (RXR). The current study uses quarterly data of these variables over the period of 1990 to 2018. The impact of OPS is examined using the ADF unit root, granger-causality test, unrestricted VAR, and variance decomposition analyses. The results demonstrate that OPS have little impact on Indonesia's macroeconomy. According to the results of the variance decomposition and Granger-causality test, the linear measure of OPS and positive OPS are not causal factors in the development of GE, RGDP, INFL, and RXR. Granger-cause NXP, but OPS. The study discovers that negative OPS significantly affect RGDP and RXR, which supports the existence of asymmetric impacts of OPS. This paper is very important for the scientific community to ensure academic contributions to all stakeholders related to oil prices in relation to Indonesia's macroeconomics which still relies on energy sources derived from oil In the global context, the Indonesian government, which is also part of the 33 countries that are members of the GGGI consortium, takes a role in succeeding the concept and targets of green growth and emission reduction for an emissions-free climate. So that in the future the Indonesian government is committed to no longer relying on the oil sector as one of the pillars of the economy to support sustainable development.