Increase in Non-Subsidised Fuel Prices Essential to Safeguard Pertamina's Finances

Executive Director of the Center of Reform on Economics (CORE) Indonesia, Mohammad Faisal, stated that the decision to increase the price of non-subsidised fuel is the right move. Faisal emphasised the importance of preserving Pertamina’s financial health amid global pressures. “If it weren’t raised, the question arises: who would bear the burden?” Faisal said when contacted by Republika in Jakarta on Sunday (19/4/2026). Faisal assessed that a healthy balance sheet would ensure the continuity of national energy assignments. Therefore, he warned that Pertamina’s burden would swell further without adjustments to non-subsidised fuel prices, leading to significant consequences for the company’s cash flow. “Non-subsidised fuel is increasingly adding to Pertamina’s burden. This should indeed be adjusted to international prices,” Faisal stated. Faisal is also convinced that the increase in non-subsidised fuel prices will not significantly impact inflation levels, as it targets the upper class. Faisal said the contribution of non-subsidised fuel prices to total inflation is far smaller compared to subsidised fuel. “For the upper class, I think their purchasing power is still relatively strong to absorb the increase in non-subsidised fuel prices,” Faisal added.