Indonesian Political, Business & Finance News

Government Urged to Anticipate Impact of Fuel Price Hike on Inflation and Purchasing Power

| | Source: MEDIA_INDONESIA Translated from Indonesian | Economy
Government Urged to Anticipate Impact of Fuel Price Hike on Inflation and Purchasing Power
Image: MEDIA_INDONESIA

Member of the House of Representatives Commission XII, Sartono, stated that the government must implement policies to anticipate the impact of the non-subsidised fuel (BBM) price increase on public purchasing power and inflation. While acknowledging that the price adjustment is a consequence of market mechanisms and rising global energy prices, he stressed that its impact must be mitigated with policies that ease the burden on the people.

“The government must think about anticipatory steps going forward. Besides maintaining a healthy fiscal condition, this policy also has other implications that need to be well-prepared, especially programmes to reduce the burden on society,” he explained in a statement quoted on Thursday (11/6).

A similar sentiment was expressed by fellow Commission XII member Meitri Citra Wardani. She urged the government and PT Pertamina (Persero) to anticipate the knock-on effects of the Pertamax price increase, which officially rose to Rp16,250 per litre on 10 June 2026. Although Pertamax is not consumed by the majority of low-income earners, Meitri argued that the significant price jump could drive consumers to switch to subsidised fuels like Pertalite, potentially causing supply disruptions or shortages.

“The government must not stop at just setting the price. The chain effect must be anticipated, namely the potential migration of Pertamax users to subsidised fuel, which could increase pressure on the energy subsidy quota,” Meitri said. She urged the government to map out the impact of the non-subsidised fuel price hike, including calculating the potential additional burden on subsidies due to changing consumption patterns. She also called on the government, through the Downstream Oil and Gas Regulatory Agency (BPH Migas), to strengthen the supervision of subsidised fuel distribution to prevent misuse or hoarding that could worsen the situation if demand surges. “The government must ensure that stock, distribution, and supervision run optimally. People who genuinely need subsidised fuel should not face difficulties obtaining their entitlement due to increased demand from groups that previously consumed non-subsidised fuel,” she concluded.

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