Economist Explains Potential Impact of Pertamax Price Hike on Inflation

An economist from the Institute for Development of Economics and Finance (Indef), Abra Talattov, has stated that the price adjustment for non-subsidised fuel Pertamax may not trigger an extreme spike in inflation. However, he warned the government must pay attention to the impact of the price adjustment on the public, particularly the urban middle class who still rely on private vehicles for daily activities, as it comes at a time when cost-of-living pressures are already rising. “The impact of the Pertamax price increase on the middle class’s purchasing power may not immediately appear as an extreme jump in national inflation, but it will be felt in daily living costs,” Abra said on Saturday (13/6/2026). He noted that data from the Central Statistics Agency (BPS) showed annual inflation in May 2026 was recorded at 3.08 percent year-on-year (yoy), an increase compared to April 2026 which was 2.42 percent yoy. “This means the public’s consumption space was already under pressure before the latest Pertamax increase is fully reflected in the following month’s inflation,” he said. The government previously emphasised that the non-subsidised fuel price adjustment was carried out in accordance with prevailing mechanisms, taking into account global energy market conditions, including geopolitical dynamics and energy distribution costs. The adjustment also has not yet fully followed the economic price in order to maintain public purchasing power. Meanwhile, subsidised fuels such as Pertalite have not experienced a price adjustment and continue to be provided according to their designation. Abra assessed that the impact of the Pertamax increase on purchasing power is likely not to be directly visible in the form of a large jump in national inflation, but will be felt more through the increase in daily living costs. “The middle class is facing a combination of pressures from transportation costs, food, education, instalments, and household needs,” he said.