Fuel Prices Stable, But Goods Prices Soaring? Economic Analyst's Analysis

REPUBLIKA.CO.ID, JAKARTA – Economic analyst Ibrahim Assuaibi has criticised the government’s decision not to raise fuel prices amid the escalating tensions in the Middle East war. Nevertheless, his observations indicate that prices of goods in the market have already experienced increases.

“Although the government has not raised fuel prices, prices in the field have already seen quite significant increases, with some even exceeding 100 percent. This indicates that the war in the Middle East, which has caused crude oil prices to rise, is having a significant impact on Indonesia’s economy,” said Ibrahim in a voice statement to reporters on Wednesday (1/4/2026).

He gave the example that plastic prices have skyrocketed, from an initial around Rp 30,000 per kilogram (kg), up 100 percent to around Rp 60,000 per kg. This shows that basic materials imported from abroad in the form of mixtures derived from crude oil have been affected by the significant rise in global crude oil prices.

On the other hand, said Ibrahim, domestically, plastic waste is not used by Indonesian society, either as packaging or for other functions.

According to him, several other imported products will also experience surges, including fertiliser and soybean commodities. “On the other hand, we also see that prices of basic necessities have already risen. It is likely to impact ready-to-eat foods that we consume every day. This will have an extraordinary impact. Then, we see that electronic goods are also likely to rise again,” he said.

His prediction is that in the field, transportation fares are also expected to be pulled up, even though fuel prices are not raised by the government.