Economist: Pertamax price hike a momentum for upper-middle class lifestyle evaluation

The upper-middle class, who are the primary consumers of Pertamax, should now begin reducing consumptive expenditures that are merely lifestyle-driven, according to Khairical Anwar, an economic observer from Mulawarman University (Unmul), East Kalimantan.

Speaking in Samarinda on Friday, Khairil Anwar stated that the increase in Pertamax fuel prices provides a momentum for the middle class to evaluate their lifestyles to remain adaptive amidst the current economic situation.

He assessed that the government has few alternatives regarding this policy due to limited fiscal space and Indonesia’s position as no longer being an oil-exporting nation.

According to him, this readiness is possible because the public has learned from a series of past crises, such as those in 2008, 2015, and during the COVID-19 pandemic, where businesses have now understood how to protect their corporate value.

Khairil explained that the impact of the Pertamax price hike primarily affects private mobility, unlike the increase in diesel prices, which triggers a surge in commodity prices due to its influence on the national logistics sector.

As a solution, he recommended that the government immediately distribute social safety nets to maintain public purchasing power. Furthermore, he emphasised the importance of intensifying technical education, in collaboration with competent workshops, regarding methods to reduce vehicle operational costs.