ANALYSIS OF THE IMPACT OF FUEL OIL PRICE INCREASES ON FISHERMEN'S INCOME IN KENDARI CITY

Analysis of The Impact of Fuel Oil Price Increases on Fishermen’s Income in


INTRODUCTION
Indonesia's agricultural sector is essential in ensuring food security, reducing poverty, providing employment, and generating income for its population (Gina et al., 2023).However, the country faces domestic challenges in meeting the growing food demand, leading to concerns about food insecurity, malnutrition, and poverty, especially among low-income individuals (Mukhlis & Gürçam, 2022) The agricultural sector, including fisheries, contributes significantly to national development by producing animal protein, supplying raw materials for agro-industries, and increasing foreign exchange earnings by exporting fishery products (Rhofita, 2022).To address these challenges, Indonesia has implemented food estate programs to optimize agricultural resources for food and energy production to support national defense objectives and resilience programs (Saridin et al., 2022).Indonesia's vast farmland and resources and strategic initiatives aim to improve food security and economic stability.
Fishermen rely heavily on their catches for income, impacting family welfare and consumption.(Yulianda et al., 2023), (Saksono et al., 2023).Rising fuel prices, especially pertalite, affect their livelihoods as fuel is essential for fishing operations.(Namwira & Nunan, 2022).In Indonesia, entities such as PT Pertamina, Indonesian Shell, and BP-AKR control the price of fuel, which impacts fishers' expenditures (Mudzakir et al., 2023).Pertamina's recent fuel price increase in November 2022 exacerbated fishers' financial burden, with pertalite increasing from IDR 7,650 to IDR 10,000 per liter (Hidayati & Widayatun, 2022)  The difference in fishermen's income before and after the fuel price increase was analyzed using a paired sample t-test to determine the average difference between the two sample groups (Santoso, 2017).This test was conducted at a significance level of 5%, which means that the tolerance of error for rejecting the correct hypothesis is at most 5%, or with a significance of 0.05.This analysis was conducted using the SPSS application.If the significance value is more than 0.05, then there is no difference in income before and after the fuel price increase.Conversely, if the significance value is less than 0.05, then income is different before and after the fuel price increase.Notes: ̃ = Average income before the fuel increase, ̃ = Average income after the fuel increase, s = Standard deviation of income before the fuel increase, s = standard deviation of income after the fuel increase, s ²= Variance of income before the fuel increase, s ²= Variance of income after the fuel increase, r = Correlation between two samples.

Respondent Identity
The respondents' identity in this study includes age, education level, number of family members, and fishing experience.To obtain a clear picture of the identity of the respondents studied, it can be seen in Table 1 below 1 shows that most fishers in Petoaha Area are within the productive age range of 15-54 years, highlighting their active involvement in fishing (Taniu et al., 2023).Furthermore, most of these fishers only received formal education up to the Primary School level, indicating low educational attainment, which may affect their access to information and economic opportunities beyond fishing (Dewi, 2023).With an average family size of four members, these fishers bear the responsibility of supporting dependents, emphasizing the economic pressure on their fishing activities (Nismawati et al., 2022).Moreover, their experience ranging from 5-10 years signifies a moderate level of expertise in fishing and navigation techniques (Sujarwo et al., 2022).In summary, the anglers in Petoaha are primarily young, with limited education, significant family obligations, and considerable experience in fishing.

Fishermen's Income Analysis
In this study, the classification of costs is divided into fixed costs and variable costs.Fixed costs are not influenced by the amount of fish production, including depreciation of equipment that occurs due to age of use.Examples of fixed costs incurred by fishermen in fishing, both before and after the fuel price increase, include the depreciation of equipment such as boats and nets.On the other hand, variable costs are directly related to each fishing operation and are used up in one operation.Components of variable costs include fuel oil, oil, consumption, and ice, all of which are incurred by fishermen in Petoaha Village, Nambo Sub-district.Further details on these fixed and variable costs can be seen in Table 2.
Based on Table 2, the average fixed cost (depreciation) of fishers in Petoaha Village is IDR 110,919 per month, with the highest depreciation cost for boats at IDR 72,273 and the lowest for anchor ropes at IDR 1,015 (Wanlem et al., 2023).Before the fuel price increase, the average variable cost was IDR 3,526,789, increasing to IDR 4,938,697 after the rise.The main variable cost was fuel, amounting to IDR 2,620,357 before and IDR 3,748,179 after the rise, while the most negligible variable cost was for ice blocks, increasing from IDR 195,818 to IDR 215,636 per month (Reza & Rosita, 2023).The significant impact of fuel price fluctuations on variable expenses is in line with findings that fuel price increases affect production and transportation costs, leading to price adjustments by traders (Parker et al., 2023).
Studies presented in the context support that fishers' income decreases when fuel prices rise due to increased operating costs (Zakaria et al., 2023), (Wanlem et al., 2023), (Reza & Rosita, 2023), Economics and Rural Development (Ijaserd) 2023: 3(2):92-99 Kaaji et al 95 eISSN: 2774-9126 (Saputra & Fathallah, 2023).Fuel is an essential component of production costs for motorboats used in fishing operations, which impacts the profitability of the fishing effort (Irvana et al., 2022).Rising fuel prices lead to higher operating costs, affecting the cost of boats, engines, and fishing gear, ultimately reducing profitability.If income from fish sales cannot offset these increased costs, fishers may experience economic stress, potentially lowering their living standards and their families.This aligns with previous research findings (Wati & Primyastanto, 2018), (Nirmawati, 2018).Based on data from Table 2, before the fuel price increase, the average monthly revenue for lajang fish was IDR2,900,000, for deho fish was IDR2,759,091, and for tembang fish was IDR2,261,818.Overall, the average revenue of fishermen before the fuel price increase was IDR7,920,909 per month.After the fuel price increase, there was a decline in fishermen's income.Monthly receipts for lajang fish dropped to IDR 2,243,182, for deho fish dropped to IDR 2,559,091, and for tembang fish dropped to IDR 2,349,091.As a result, the average income of fishermen after the fuel price increase was IDR 7,151,364 per month.
Following the fuel price hike, fishermen in various locations experienced a decline in their receipts, significantly impacting their income levels.In some areas of Indonesia, government assistance in the form of fishing gear and boats is essential in improving the welfare of fishermen and meeting their daily needs (Febriani & Rusdi, 2023).Commercial fishing boat operators face rising costs, leading to a decreased return on investment, with adjustments made to combat rising fuel prices, albeit with limited government aid (Wanlem et al., 2023).Small-scale fishers diversify their activities during the non-fishing season to ensure food security, demonstrating the importance of additional sources of income (Purwanti et al., 2023).Factors such as capital, fishing experience, and fish catch influenced the income of marine fishers from earnings in the fishing industry (Evelinda & Suasih, 2023).Practices such as debt arrangements with capital owners impact fishers' profitability, with implications for income stability and economic sustainability (Tobing & Hasibuan, 2022).
Table 2 shows that the average income of fishermen in the west season before the fuel price increase was IDR 5,584,738 per month.After the fuel price increase, the average income of fishermen in the same season dropped to IDR 3,959,960 per month.This indicates that fishermen's income before the fuel price increase was higher than after, with a difference in income of IDR 1,627,778.This shows the significant impact of the fuel price increase on fishers' income during the western season.The decline in fishers' income after the fuel price increase was evident in the context of fuel consumption and its impact on fishing operations (Purwanti et al., 2023).Efforts to diversify income sources, such as through additional professions and government support programs, aim to reduce income fluctuations in the fishing industry (Saputra & Fathallah, 2023), (Taniu et al., 2023).Economics and Rural Development (Ijaserd) 2023: 3(2):92-99 eISSN: 2774-9126

International Journal of Agricultural Social
Analyzing household income data reveals that factors, such as cooperative membership and access to credit, positively affect fishers' income (Boari et al., 2022).The structural growth of the fishing industry in Indonesia, as indicated by increases in output and exchange rate, reflects changes in fishing grounds that impact the income dynamics of fishers (Firmansyah et al., 2023).Therefore, the income differences observed before and after the fuel price hike underscore the vulnerability of fishers' livelihoods to external factors such as fuel costs.This research is also in line with the idea that operational costs, mainly fuel prices, have a significant impact on fishers' income (Pelamonia & Farida, 2023), (Sau Sabu & Sofyan, 2022), (Wanlem et al., 2023).High operational costs, such as the price of fuel oil, constitute a large part of the total costs in fishing operations, ranging from 40-50% (Saputra & Fathallah, 2023).Fluctuations in fuel prices can adversely affect fishers' income, especially when they travel long distances at sea where catches are uncertain (Alatas & Umar A, 2022).This study emphasizes the importance of considering operational costs, including fuel costs, in assessing the economic viability of fishing activities and the subsequent impact on fishers' income levels].This finding underscores the critical role of managing operational costs, especially fuel expenditure, to ensure the sustainability and profitability of fishing operations.

Impact of Fishermen's Income Before and After the Increase in Fuel Oil
This study used the paired sample t-test to compare fishermen's income before and after the fuel price increase.This test helps determine whether there is a statistically significant difference between the two conditions.Furthermore, the results of the paired sample t-test will provide a clearer understanding of the impact of the fuel price increase on fishermen's income by measuring the changes in income that occurred in the pre-and post-increase conditions.3 presents the results of the Paired Samples Test between fishermen's income before and after the fuel price increase.The test results show a significant difference between fishermen's income before and after the fuel price increase.The average difference in income recorded is IDR 1,627,778.
The test results show a t-statistic value of 13.806, which indicates how much the average differences between the two conditions (fishermen's income before and after the fuel increase) differ from each other compared to the variation in the sample.This test's significance value (Sig.) is 0.000, indicating the probability that the observed difference between income before and after the fuel increase occurred by chance.In a statistical context, a significance value below 0.05 is usually interpreted as solid evidence that the difference is statistically significant and did not occur by chance.
The impact of rising fuel prices on fishers' income is of significant concern.Studies show that fuel prices directly affect operating costs in fishing operations, with fuel costs accounting for a large share of total expenses (Zakaria et al., 2023).An increase in fuel prices leads to an increase in production and transportation costs, affecting the price of goods and fishermen's income (Al Fajrin et al., 2023).In addition, fuel-intensive fisheries can still be profitable due to fuel subsidies, especially when targeting high-value species.Still, the overall fuel use intensity and economic efficiency of the fishery remain stable despite fluctuations in fishing effort (Saputra & Fathallah, 2023).However, contrary to expectations, a study of rural populations in Malaysia found that fluctuations in fuel prices did not significantly alter mobility patterns, suggesting a complex relationship between fuel prices and income across different sectors (Reza & Rosita, 2023).
Rising fuel prices significantly impact fishermen's operating costs, as fuel is a significant component in the operation of fishing boats and engines (Wanlem et al., 2023), (Al Fajrin et al., 2023).Higher fuel prices lead to increased operating costs for fishers, requiring them to spend more on the same amount of fuel, affecting their overall profitability and financial sustainability (Reza & Rosita, 2023).In addition, policies that directly affect the cost of fishing, such as fuel subsidies, can contribute to overfishing, as seen in the case of fuel tax concessions (FTCs) that encourage domestic fishing effort due to the requirement to refuel at domestic ports to benefit from the policy (Saputra & Fathallah, 2023).This interaction between fuel prices, operating costs, and fishing policies underscores the complex dynamics affecting the fishing industry in response to changes in fuel prices.

CONCLUSIONS AND SUGGESTIONS
This study successfully examined the differences in fishermen's income in Petoaha Village, Nambo Sub-district, Kendari City, before and after the fuel price increase.Analysis using paired sample t-test showed a significant difference in fishermen's income, with a decrease in average income of IDR 1,627,778 after the fuel price increase.This result confirms that the fuel price increase directly impacts fishermen's operational profitability, leading to a decrease in their income.From these findings, we propose a new approach to fishing policy and marine resource management that considers fluctuations in fuel costs.This study recommends implementing risk reduction strategies, such as diversification of fishers' economic activities and more focused fuel subsidies, to mitigate the impact of fuel price increases.This approach will not only help anglers cope with operational costs but also support the sustainability of more efficient and economical fishing practices.Implementing this fuel cost-sensitive policy is expected to help strengthen the economic resilience of fishing communities, increase their income, and promote sustainable management of marine resources.
This price spike affects subsidized diesel and first price as well, further straining fishers' finances].Such increased costs pose a challenge to fishers' economic stability and underscore the vulnerability of their livelihoods to external factors such as fuel price fluctuations].= Total Cost (IDR/month), FC = Fixed Cost (IDR/month), VC = Variable Cost (IDR/month), TR = Total Revenue (IDR/month), P = Price (IDR/kg), Q = Quantity (Kg), Pd = Fishermen's Income (IDR) :

Table 2 .
Fixed costs, variable costs, revenue, and income of fishermen in Petoaha Village before and after the increase in fuel oil in 2023

Table 3 .
Paired sample test results