{
    "success": true,
    "data": {
        "id": 1685761,
        "msgid": "energy-economist-increase-in-non-subsidised-fuel-prices-is-the-right-step-1776513052",
        "date": "2026-04-18 17:35:31",
        "title": "Energy Economist: Increase in Non-Subsidised Fuel Prices is the Right Step",
        "author": "Hasanul Rizqa",
        "source": "REPUBLIKA",
        "tags": "",
        "topic": "Energy",
        "summary": "An energy economist from Gadjah Mada University has endorsed the Indonesian government's decision to raise prices of non-subsidised fuels, stating that it aligns with market-based pricing mechanisms and helps reduce the fiscal burden on the state budget by limiting compensation payments to Pertamina. He argues that this adjustment will not significantly impact national inflation, unlike potential increases in subsidised fuels such as Pertalite and Solar, which could trigger broader inflationary pressures. While some consumers might shift to subsidised options due to price disparities, the economist believes the scale of such migration will be limited, particularly for luxury vehicles designed for higher-grade fuels.",
        "content": "<p>The government\u2019s decision to increase the price of non-subsidised\nfuel oil (BBM) has been deemed an appropriate step. Fahmy Radhi, an\nenergy economist from Gadjah Mada University (UGM), emphasised that the\npolicy is in line with the economic pricing mechanism that has been in\nplace. \u201cIn my view, that step is already very appropriate,\u201d Fahmy told\nRepublika on Saturday (18\/4\/2026). He explained that the adjustment of\nnon-subsidised BBM prices should indeed be carried out because their\ninitial setting has always referred to market mechanisms. Moreover, if\nthe prices were not raised, the burden on the State Revenue and\nExpenditure Budget (APBN) would become even greater. \u201cIf it had not been\nraised yesterday (early April 2026), the APBN burden for paying\ncompensation to Pertamina would have become even larger,\u201d he said.\nAccording to him, the government not only has to bear subsidies for\ncertain BBM but also compensation to Pertamina due to the difference\nbetween the selling price and the economic price. With the increase in\nnon-subsidised BBM prices, that burden can be reduced. \u201cBy raising it,\nit will reduce the substitution burden that the APBN has to pay to\nPertamina earlier. So, I think that step is already very appropriate,\u201d\nhe stated. Regarding the impact on inflation, Fahmy assessed that the\nincrease in non-subsidised BBM prices will not exert significant\npressure on the national economy. \u201cIf it\u2019s an increase in non-subsidised\nBBM prices, it does not have a significant impact on inflation increases\nbecause the amount is not that large,\u201d he said. He added that\nsignificant inflationary impacts would only be felt if the government\nraises prices of subsidised BBM such as Pertalite and Solar. \u201cIf\nPertalite and Solar are raised, that will certainly ignite inflation.\nBut if it\u2019s an increase in non-subsidised BBM prices, it does not have a\nsignificant impact,\u201d he said. Fahmy also acknowledged the potential for\nsome consumers to shift to subsidised BBM due to price differences.\nHowever, he believes the scale of such shifting will be relatively\nlimited. \u201cAs long as the price disparity between subsidised and\nnon-subsidised BBM is quite large, that will trigger migration to\nPertalite,\u201d he said. Nevertheless, he assessed that the shifting will\nnot be too large, especially for certain vehicles. \u201cMotorcycles might\nnot shift that much either. Meanwhile, for private cars, especially\nluxury cars, they cannot use Pertalite because their engines are\ndesigned to use Pertamax and above,\u201d he said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/energy-economist-increase-in-non-subsidised-fuel-prices-is-the-right-step-1776513052",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}