Jakarta (ANTARA) - Robert R Winerungan, an economist at Manado State\nUniversity (Unima), has assessed the government\u2019s decision to hold the\nprices of subsidised fuels, namely Pertalite and Biosolar, as highly\nappropriate for protecting the public\u2019s purchasing power.<\/p>\n
\u201cI think it is a very wise decision by the government. Because if the\ngovernment also raised the price of Pertalite, inflation could spiral\nout of control,\u201d Robert said in a statement received in Jakarta on\nTuesday.<\/p>\n
Robert explained that a rise in fuel prices would have a chain effect\non transport costs and the prices of various essential goods.<\/p>\n
This situation means the government cannot simply release the price\nof Pertalite to follow market mechanisms.<\/p>\n
Intervention through pricing policy is necessary because Pertalite is\nwidely consumed by the public, so any change in its price could affect a\nwide range of economic activities.<\/p>\n
\u201cPrices are already rising even without fuel going up, let alone if\nfuel rises. In other words, the government really cannot simply throw\nthe price of Pertalite to the market because that could potentially\nburden the public,\u201d Robert said.<\/p>\n
He acknowledged that maintaining Pertalite at Rp10,000 per litre when\nthe world oil price has reached US$107 per barrel would have\nconsequences for the state budget (APBN).<\/p>\n
The gap between the economic price and the price paid by the public\nultimately increases the burden that must be borne by the\ngovernment.<\/p>\n
\u201cThe subsidy may indeed swell. But the benefit is that our inflation\nis not too high and the public\u2019s purchasing power can, to some extent,\nbe maintained,\u201d he said.<\/p>\n
According to Robert, current economic pressure has even begun to\nchange fuel consumption patterns among certain groups of the\npopulation.<\/p>\n
He has observed that consumers who previously used Pertamax Turbo and\nRON 92 fuel have started switching to Pertalite to reduce their\nspending.<\/p>\n
\u201cIf Pertalite rises, the middle class will be squeezed even further.\nEven worse off would be the lower class, because transport costs would\nrise and so on. There are many knock-on effects if the price of\nPertalite goes up,\u201d Robert said.<\/p>\n
Previously, Minister of Energy and Mineral Resources (ESDM) Bahlil\nLahadalia noted that the average national oil price for the\nJanuary-September 2026 period stood at around US$85-90 per barrel,\nhigher than the 2026 budget assumption of US$70 per barrel.<\/p>\n
Nevertheless, the government decided to keep the price of subsidised\nfuel from rising as a step to protect the purchasing power of lower- and\nmiddle-income communities.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/government-decision-to-hold-subsidised-fuel-prices-deemed-correct-1789480615", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }