Indonesian Political, Business & Finance News

Pertamax Price Hike Prompts Shift to Pertalite, Here's What Purbaya Says!

| Source: CNBC Translated from Indonesian | Economy
Pertamax Price Hike Prompts Shift to Pertalite, Here's What Purbaya Says!
Image: CNBC

The increase in the price of Pertamax (RON 92) fuel has raised fears of a consumption shift to Pertalite, thereby pressuring the State Revenue and Expenditure Budget (APBN).

Finance Minister Purbaya Yudhi Sadewa, alongside relevant stakeholders, has prepared comprehensive mitigation measures. The distribution oversight of subsidised fuel will be further tightened to ensure it hits the target.

This step was taken to guarantee that subsidised fuel continues to be enjoyed by those entitled to it and that the APBN quota is maintained until the end of the year.

Purbaya stated that the price of Pertamax, now set at Rp16,250 per litre, is not expected to trigger a surge in national inflation. The domino effect of this policy on the prices of goods and services in the community is believed to be very limited.

This optimism is based on the characteristic of Pertamax users, the majority of whom are private vehicles belonging to the upper-middle class, rather than logistics vehicles or public transport which form the artery of staple goods distribution.

Consequently, the national production and logistics cost structure is projected to remain undisturbed. The Minister of Finance emphasised that the inflation rate throughout 2026 is expected to remain stable and within the corridor of the 2026 State Budget assumptions.

β€˜The impact on inflation should be limited, because public transport and freight vehicles do not use Pertamax,’ Purbaya remarked.

View JSON | Print