Oil prices remain one of the most pressing pressures on the Indonesian economy, with Brent at around US$106.93 per barrel, while West Texas Intermediate at around US$102.65 per barrel.

The oil price level above $100 makes energy issues more than just a commodity market story.

Energy Imports Are Getting More Expensive

Indonesia still needs oil and fuel imports to meet its domestic needs. As the world's oil prices rise, the value of energy imports could potentially increase.

International oil transactions use the U.S. dollar, so a combination of high oil prices and weak rupees can significantly increase energy purchase costs.

Subsidies and Inflation Are Pressurised

High oil prices also pose a challenge to government budgets, and if domestic fuel prices are maintained, the need for subsidies and energy compensation could potentially increase.

On the other hand, the business world is facing rising transportation, distribution, and production costs, some of which can be passed on to consumers through rising prices of goods and services.

That means oil pressure doesn't stop at the SPBU, and the effects can go to shipping costs, food prices, production costs, to national inflation.

Trade Scams Need to Be Caused

High oil prices can also put pressure on Indonesia's trade balance, especially as oil and gas trade remains one of the sources of deficits.

If the value of energy imports increases faster than exports, Indonesia's trade surplus can narrow, which can also increase domestic demand for the US dollar and put additional pressure on the exchange rate of the rupee.

The effects can be felt in many sectors

As long as oil prices remain above $100 a barrel, governments and the business world need to take energy costs more seriously.

Oil prices may be determined far from Indonesia, but the impact can be felt to the logistics costs, commodity prices, state budgets, and people's wallets.

In the end, one barrel of oil can look like a figure in the global market, and the bills can appear in almost every line of Indonesia's economy.

A more in-depth analysis of economic and business developments can be found at Insimen for a sharper perspective.