{
    "success": true,
    "data": {
        "id": 1799629,
        "msgid": "government-must-prepare-fundamental-stimulus-to-ease-fuel-price-pressures-1781247321",
        "date": "2026-06-12 13:17:52",
        "title": "Government must prepare fundamental stimulus to ease fuel price pressures",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Economy",
        "summary": "An economist has urged the Indonesian government to implement fundamental stimulus measures, such as accelerating state spending and supporting labour-intensive sectors, to counter the impact of rising non-subsidised fuel prices. The recent hike in Pertamax prices threatens the purchasing power of the middle class, while poorly targeted energy subsidies are seen as fiscally inefficient. The call comes as inflation and interest rates are already squeezing household consumption.",
        "content": "<p>Jakarta (ANTARA) - The Head of the Macroeconomics and Finance Centre\nat the Institute for Development of Economics and Finance (INDEF), M\nRizal Taufikurahman, believes the government needs to prepare\nfundamental stimulus to ease the pressure from rising non-subsidised\nfuel oil (BBM) prices. \u201cA combination of short-term stimulus and job\ncreation will be key to maintaining purchasing power while supporting\neconomic growth amid the pressure of rising non-subsidised fuel prices,\u201d\nhe said when contacted by ANTARA in Jakarta on Friday. On a more\nfundamental level, the government needs to accelerate state and regional\nspending that has a high multiplier effect, encourage investment, and\nsupport micro, small, and medium enterprises (UMKM) and labour-intensive\nindustries. With more than 97 percent of Indonesia\u2019s workforce employed\nin the UMKM sector, Rizal said maintaining liquidity and activity in\nthis sector would be more effective in preserving people\u2019s incomes than\nmerely providing consumptive aid. The increase in non-subsidised fuel\nprices has the potential to suppress purchasing power, especially among\nthe middle class, which has been the engine of domestic consumption.\n\u201cIndonesia\u2019s inflation in May 2026 was around 3.08 percent year-on-year,\nand the BI-Rate has already risen to 5.50 percent, so the space for\npublic consumption is increasingly squeezed by rising living costs and\ncredit costs,\u201d he explained. Rizal cited strengthening social assistance\nfor vulnerable groups and extending incentives for labour-intensive\nsectors as examples of the stimulus that should be rolled out. \u201cThis\nstep is more effective than expanding energy subsidies, considering that\naround 20 percent of the highest-income household groups still enjoy a\nrelatively large portion of energy subsidies, so poorly targeted\nsubsidies actually reduce fiscal efficiency,\u201d he said. As a note,\nstarting 10 June 2026, the price of non-subsidised Pertamax (RON 92)\nfuel rose from Rp12,300 to Rp16,250 per litre, and Pertamax Green 95\n(RON 95) increased from Rp12,900 to Rp17,000 per litre. Meanwhile, the\nsubsidised fuel Pertalite remains priced at Rp10,000 per litre and\nBiosolar at Rp6,800 per litre.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/government-must-prepare-fundamental-stimulus-to-ease-fuel-price-pressures-1781247321",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}