Indonesian Political, Business & Finance News

ESDM Says Pertamax Price Hike Still Below Economic Value

| Source: CNBC Translated from Indonesian | Energy
ESDM Says Pertamax Price Hike Still Below Economic Value
Image: CNBC

The Ministry of Energy and Mineral Resources (ESDM) has stated that the current price adjustment for non-subsidised fuel Pertamax (RON 92) is still far below the economic price it should be. This is evident when comparing the price of fuel with the same specifications sold in neighbouring countries.

ESDM spokesperson Dwi Anggia explained that pricing for non-subsidised products follows international market mechanisms. She noted that the parameters forming the price include crude oil procurement costs, distribution costs, storage costs, and tax components that must be borne by the company.

“If we talk about the economic price for non-subsidised fuel, especially RON 92, when we look at neighbouring countries it is around Rp 20-21 thousand per litre. So the increase or adjustment made now is actually still far below the economic price,” she said when met at the ESDM Ministry office in Jakarta, quoted on Friday (12/6/2026).

The government stressed that the decision to adjust the price aims to ensure that fuel distributing business entities can maintain sustainable supply availability. Although the price of Pertamax has risen, the government guarantees that vulnerable and poor communities remain protected through the stability of subsidised fuel prices.

“Pertalite will not increase, and subsidised diesel will also not increase, because these would have a very large impact. Then, if we talk about it, there will certainly be a domino effect. The government also understands this and cannot ignore the fact that it exists,” she added.

The government has assured that there will be no new regulations complicating matters for two-wheeled vehicle users. Current supervisory focus is directed at preventing hoarding practices or misuse of subsidy quotas in the field to avoid scarcity.

“For motorcycles, there will be no restrictions whatsoever. The Minister has clearly stated that two-wheeled vehicles are free. But there should also be no ‘helicopter’ practices of going back and forth filling up tanks repeatedly at petrol stations, as we know that happens a lot,” she concluded.

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