The Institute for Development of Economics and Finance (Indef)\nassesses that the main impact of the Pertamax price increase does not\nstem from inflationary pressure, but rather from its effect on public\npurchasing power. The primary impact will target the middle class, who\nare the main users of this fuel.<\/p>\n
Indef\u2019s Head of Macroeconomics and Finance, M. Rizal Taufik\nTaufikurahman, stated that with Bank Indonesia\u2019s benchmark interest rate\nat 5.50 percent, a weakening rupiah exchange rate, and rising living\ncosts, the Pertamax price hike has the potential to increase household\ntransportation expenditure burdens. This situation is considered likely\nto reduce real public income and restrain the pace of domestic\nconsumption, which has historically contributed more than 50 percent to\nIndonesia\u2019s gross domestic product (GDP).<\/p>\n
\u201cThe greater impact actually occurs on public purchasing power,\nparticularly the middle class as the main users of Pertamax,\u201d Rizal told\nTempo on Friday, 12 June 2026. Therefore, according to him, the biggest\nrisk from the Pertamax price increase is not an inflation spike, but\nrather the weakening of public purchasing power and a slowdown in\nconsumption, which is one of the main engines of economic growth.<\/p>\n
On the other hand, Rizal estimates the direct impact of the Pertamax\nprice increase on inflation to be relatively limited. Pertamax is not\nthe primary fuel used by public transport or logistics distribution, so\nits contribution to general inflation is not as large as subsidised\nfuels.<\/p>\n
Nevertheless, the Pertamax price increase, which reached 32.1\npercent, still has the potential to trigger second-round effects. The\nincrease could raise operational costs in the services, transportation,\nand micro, small, and medium enterprise (MSME) sectors, as well as drive\ninflation expectations amid annual inflation that had already reached\n3.08 percent in May 2026.<\/p>\n
Rizal noted that the experience of the Pertamax price increase in\nDecember 2025, when the fuel price reached Rp12,750 per litre, showed\nthat the policy did not become the main trigger for a national inflation\nspike. However, even though Pertamax prices fell again in January and\nFebruary 2026, the price increase still pressured the transportation and\nservices sectors through business cost adjustments.<\/p>\n
Thus, Rizal assesses that the greatest impact of the Pertamax price\nincrease does not come from a direct influence on the Consumer Price\nIndex (CPI), but rather from the gradual adjustment of goods and\nservices prices as business operational costs rise.<\/p>\n
Previously, PT Pertamina Patra Niaga increased the prices of Pertamax\nand Pertamax Green fuel products on Wednesday, 10 June 2026. The\nnon-subsidised fuel prices that rose include Pertamax (RON 92), from Rp\n12,300 to Rp 16,250 per litre, and Pertamax Green 95 (RON 95), which\nrose from Rp 12,900 to Rp 17,000 per litre.<\/p>\n
\u201cThe price adjustment for Pertamax and Pertamax Green was carried out\nafter an evaluation process in accordance with the price formula set by\nthe government,\u201d said Pertamina Patra Niaga Corporate Secretary Roberth\nM.V. Dumatubun in a written statement.<\/p>\n
The increase in Pertamax and Pertamax Green fuel prices, according to\nPertamina, was decided after coordination with the government as the\nregulator. Additionally, the pricing decision was made in accordance\nwith a periodic evaluation mechanism considering developments in world\noil prices and economic market prices. Roberth explained that the\nnon-subsidised fuel price adjustment was carried out in accordance with\napplicable regulations.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indef-assesses-pertamax-price-hike-impact-on-purchasing-power-1781419943", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }