CORE Deems Non-Subsidised LPG Price Increase Appropriate, Explains Reasons

Economist from the Center of Reform on Economics Indonesia (CORE), Yusuf Rendy Manilet, understands PT Pertamina (Persero)’s decision to increase the price of 12 kg LPG. Yusuf states that Pertamina should have made this price adjustment long ago. From a corporate sustainability perspective, this step can actually be understood, even described as somewhat late. Pertamina held the 12 kg LPG price steady for nearly two and a half years, even though global energy prices were quite volatile during that period,” said Yusuf when contacted by Republika in Jakarta on Monday (20/4/2026). Yusuf explained that benchmarks like the Contract Price Aramco fluctuated quite sharply, while the rupiah did not always favour importers. In such situations, he said, when the selling price remains unchanged but costs continue to rise, the difference is borne as a burden. In the short term, this does feel like protecting consumers. But if left unchecked, the impact on cash flow and investment capacity will start to be felt,” he continued. Ultimately, Yusuf added, this could affect the reliability of the supply itself. Therefore, from the company’s financial side, according to Yusuf, this price adjustment is indeed part of a correction to keep the balance sheet healthy. The problem is, when viewed from the household and basic services side, the picture becomes far more complex,” said Yusuf.