Indonesian Political, Business & Finance News

Misbakhun: Fuel Price Hike Will Certainly Trigger Inflation

| Source: VIVA Translated from Indonesian | Economy
Misbakhun: Fuel Price Hike Will Certainly Trigger Inflation
Image: VIVA

Chairman of Commission XI of the Indonesian House of Representatives (DPR RI) Mukhammad Misbakhun has responded to the increase in Pertamax fuel prices effective 10 June 2026. He asserted that the fuel price hike will certainly trigger inflation. “Certainly, if fuel prices rise, it will always be followed by an increase in inflation, it’s certain,” Misbakhun told reporters at the Parliamentary Complex in Senayan, Jakarta, on Wednesday, 10 June 2026. Nevertheless, he could not specify the percentage of inflation likely to result from the fuel price increase. He also noted that the public primarily uses Pertamax fuel. “What the percentage is, the decimal points, we do not know yet. Because Pertamax is more widely consumed by the public. It is not industrial fuel, which usually exerts the heaviest pressure,” he said. Following the Pertamax increase, the public is expected to switch to lower-priced fuels. However, he could not yet explain in detail the impact of the Pertamax price increase. “Certainly, when prices rise, people look for the lowest prices. We have not yet carried out the calculations regarding that. More in-depth calculations have been made, and we will see what the impact is later,” Misbakhun said. “The government did delay. They delayed, when Pertamax Plus and Pertamax Turbo were already raised. But Pertamax had not yet been,” he continued. Pertamina Patra Niaga announced the price increases for Pertamax and Pertamax Green fuel products starting 10 June 2026. According to a company press release, from 10 June 2026, the price of non-subsidised Pertamax (RON 92) rose from Rp12,300 to Rp16,250 per litre, and Pertamax Green 95 (RON 95) rose from Rp12,900 to Rp17,000 per litre. “The price adjustments for Pertamax and Pertamax Green were carried out after an evaluation process in accordance with the pricing formula set by the government,” said Pertamina Patra Niaga Corporate Secretary Roberth MV Dumatubun. According to the company, the price adjustments were decided in coordination with the government as regulator and implemented according to a periodic evaluation mechanism, taking into account global oil price developments and economic market prices.

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