Experts Say Pertamax Price Hike Unavoidable for Government
The government’s official policy to increase the price of non-subsidised fuel Pertamax (RON 92) to Rp16,250 per litre as of Wednesday (10/6/2026) is considered an unavoidable measure. Several academics and economists state this price adjustment is a realistic decision to safeguard the health of the state budget (APBN) from fiscal pressures caused by the surge in global crude oil prices.
Energy economics expert from Gadjah Mada University (UGM), Fahmy Radhi, explained that as a non-subsidised product, the price of Pertamax should ideally fluctuate according to economic oil price movements and global market mechanisms. “The government has actually been holding back the Pertamax price increase since March 2026 to protect people’s purchasing power. However, because the compensation burden that the state must pay to Pertamina has continued to swell, our fiscal space has become very limited,” Fahmy said when contacted on Wednesday (10/6/2026).
This price adjustment also corrects Indonesia’s domestic fuel price position to make it more comparable with neighbouring countries. Macro comparative data shows that Indonesia is one of the countries in Southeast Asia that has held back non-subsidised fuel prices the longest amidst global geopolitical uncertainty. Singapore: Rp43,100 per litre, Philippines: Rp27,500 per litre, Cambodia: Rp22,600 per litre, Thailand: Rp22,600 per litre, Indonesia (Pertamax): Rp16,250 per litre, Vietnam: Rp13,400 per litre, Malaysia: Rp9,100 per litre.
Similarly, economist from Manado State University (UNIMA), Robert Winerungan, assessed that the Pertamax price adjustment will not trigger a major economic shock among lower-income groups. This is because the consumer segmentation for Pertamax is predominantly the upper-middle class and owners of newer vehicle models. “The impact will not be too significant on general inflation. The majority of the lower-middle class relies on Pertalite, the price of which is maintained by the government at Rp10,000 per litre. The state budget intervention should indeed be focused there, not on RON 92,” Robert elaborated. Robert added that if the domestic fuel price gap with neighbouring countries becomes too wide, the risk of misappropriation in the form of illegal cross-border trade increases and could potentially harm state finances.
Despite the positive impact on the health of the national budget position, the government is asked to anticipate the side effects of the widening price disparity between Pertamax and Pertalite. The government and Pertamina are urged to tighten supervision at public fuel stations (SPBU) to prevent a massive migration of consumers from Pertamax to Pertalite. Strict restrictions and regulations must be applied so that subsidised fuel remains on target and the state’s fiscal savings targets can be achieved optimally.