Government Deemed Late in Raising Pertamax Price Amidst Energy Crisis, Analyst Says

The government’s decision to raise the price of Pertamax to Rp16,250 per litre is seen as an unavoidable step amid pressure from global oil prices and the weakening of the rupiah exchange rate. Public Policy analyst from Padjadjaran University (Unpad), Bonti Wiradinata, even assessed that the price adjustment was actually implemented late, as global energy turmoil has been ongoing since February 2026. According to Bonti, the government chose to hold back the increase in non-subsidised fuel prices to maintain people’s purchasing power and national economic stability. He stated that this policy provided space for the public and business actors to adjust their financial conditions before facing the energy price hike. “Indonesia indeed tends to have a less frequent and gradual adjustment frequency. However, this is a deliberate policy choice to maintain a social cushion, not merely unpreparedness in managing prices,” Bonti said on Thursday (11/6/2026). He explained that the price of Pertamax as a non-subsidised fuel basically follows the development of world oil prices and the rupiah exchange rate. When these two factors experience pressure over a long period, the government ultimately must make adjustments to avoid a larger fiscal burden. Bonti assessed that the government’s move to hold prices over the past few months deserves appreciation for providing an economic and psychological buffer to the public. However, according to him, the longer the price adjustment is postponed, the greater the pressure that must be borne by the state and energy business entities. “The urgency of raising this fuel price is, I estimate, related to the government’s strategy in maintaining the rupiah exchange rate against the US dollar and overcoming state budget pressures occurring as a result of the rupiah weakening,” he said. According to him, maintaining non-subsidised fuel prices below the economic price in the long term has the potential to burden cash flow and enlarge energy compensation needs. Therefore, the price adjustment is considered a realistic step to maintain the state’s fiscal health. “By adjusting prices, the government minimises the potential for ballooning energy compensation costs. This is an effort to ensure that the state budget remains focused on other priority financing,” Bonti said. He added that the risk of social turmoil due to the Pertamax increase is relatively more controllable compared to if the government raised subsidised fuel prices. This is because Pertamax users generally come from community groups that have more choices in regulating their energy consumption patterns. Separately, the Executive Secretary of the Indonesian Consumers Foundation (YLKI), Rio Priambodo, stated that the organisation understands that non-subsidised fuel prices are influenced by the dynamics of world oil prices and the rupiah exchange rate against the US dollar. Rio requested that the Pertamax price increase be followed by an improvement in service quality that is directly felt by consumers. According to him, the public has the right to obtain product quality and service commensurate with the price paid. Rio emphasised that consumers are entitled to guaranteed fuel quality, ease of access, distribution reliability, measurement accuracy, and better service at all petrol stations. “Consumers should not only be asked to accept a price increase without obtaining a commensurate increase in benefits and service quality,” Rio said. In addition, Rio also encouraged Pertamina and the government to increase transparency in delivering information related to fuel price changes. According to him, better public communication will help the public understand the reasons behind the price adjustment policy implemented by the government.