DPR Commission VI explains Pertamax price adjustment

Jakarta (ANTARA) - The Deputy Chairman of Commission VI of the Indonesian House of Representatives (DPR RI), Andre Rosiade, stated that the price adjustment for Pertamax, a non-subsidised fuel, was conducted by considering the condition of the public, while the government continues to maintain the price of subsidised fuel to preserve people’s purchasing power.

He believes the public needs to understand that the government is not raising the price of subsidised fuel, which is used by the majority of the population.

“The government, to this day, continues to maintain the price of subsidised fuel as a form of commitment to protect public purchasing power amidst global economic dynamics,” Andre said in a statement received in Jakarta on Monday.

According to him, based on an Investortrust report, approximately 20 to 23 per cent of vehicle petrol consumption in Indonesia currently comes from non-subsidised fuel. Meanwhile, about 77 to 80 per cent still uses subsidised fuel, particularly Pertalite.

Therefore, he considers the assumption that the government is raising all types of fuel to be inconsistent with the facts on the ground. Andre emphasised that the government is not raising the price of subsidised fuel, but is merely performing an adjustment on non-subsidised fuel.

“This shows the government’s commitment to remaining with the people and safeguarding the needs of the wider community,” said the leader of the parliamentary commission overseeing trade, cooperatives, SOEs, investment, and competition supervision.

Andre explained that the price of non-subsidised fuel is fundamentally influenced by movements in global oil prices and international geopolitical developments. In such conditions, he noted, it is impossible for the government to continuously hold back non-subsidised fuel prices as it could burden the state’s finances.

Nevertheless, he argued that the Pertamax price adjustment was carried out in a measured manner while still considering the interests of the public. He believes the government is striving to find a balance between fiscal sustainability and the needs of non-subsidised fuel consumers.

“Non-subsidised fuel prices cannot be continuously held back because they follow global oil price developments, yet the government still considers the people’s interests in determining the applicable prices,” said Andre.

For this reason, he invited the public to view the fuel price issue more holistically by considering global conditions and the protection policies still provided by the government through subsidised fuel. He stated that the policy of maintaining subsidised fuel prices demonstrates the government’s alignment with those in need.

“The most important thing is that the government continues to ensure that the price of subsidised fuel does not rise and ensures that the public continues to receive protection. The adjustment of non-subsidised fuel prices is carried out in a measured way, considering the national economic condition,” he said.

The price of Pertamax (RON 92) is currently Rp16,250 per litre for the regions of DKI Jakarta, Central Java, DI Yogyakarta, and East Java. This price increase officially took effect on Wednesday, 10 June, starting from 00:00 WIB.

The increase is sebesar Rp3,950 per litre from the previous stable price of Rp12,300 per litre.

PT Pertamina Patra Niaga implemented this adjustment to follow the surge in global crude oil prices caused by global geopolitical tensions and the weakening of the rupiah exchange rate. The government had previously held these prices steady for several months to prevent an increase.

Other non-subsidised fuels, such as Pertamax Green 95, also surged from Rp12,900 to Rp17,000 per litre. Meanwhile, Pertamax Turbo remains at Rp20,750 per litre. However, subsidised fuel prices remain unchanged, with Pertalite staying at Rp10,000 per litre and Biosolar remaining at Rp6,800 per litre.