Pertamax Price Hike Needed to Defend Rupiah and Ease State Budget Pressure

Public Policy Analyst from Padjadjaran University (Unpad) Bonti Wiradinata assessed that the increase in non-subsidised fuel oil (BBM) prices aims to maintain the rupiah’s exchange rate against the US dollar and address pressure on the state budget (APBN). The price of Pertamax was set to rise on 10 June 2026 to Rp 16,250 per litre.

“The urgency of raising this fuel price, I estimate, is related to the government’s strategy in defending the rupiah exchange rate against the US dollar and addressing the APBN pressure occurring as a result of that rupiah weakening,” Bonti said in a statement received in Jakarta, Thursday (12/6/2026).

He explained that the price of Pertamax as a non-subsidised fuel fundamentally follows the development of world oil prices and the rupiah exchange rate. When these two factors experience pressure over a sufficiently long period, the government ultimately must make adjustments to avoid creating a larger fiscal burden.

Bonti considered the government’s move to hold prices over the past several months worthy of appreciation because it provided an economic and psychological cushion 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.

He added that 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 seen as 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 APBN remains focused on financing other priorities,” Bonti said.