Pertamax Price Hike Unavoidable, CORE Says

The Executive Director of CORE Indonesia, Mohammad Faisal, believes that the increase in Pertamax prices announced by PT Pertamina Patra Niage was long-predicted. According to him, the surge in the Indonesian Crude Price (ICP) over recent months meant that an adjustment to non-subsidised fuel prices was only a matter of time.

“This certainly needs to be clarified with Pertamina, but in my view, there are several reasons and possibilities,” Faisal told Republika on Wednesday (10/06/2026).

He explained that one of the primary factors relates to the differing characteristics between Pertamina and private companies. Private firms generally respond to cost changes by considering commercial aspects, whereas Pertamina, as a State-Owned Enterprise (SOE), also considers the social impact of every pricing policy.

This condition, Faisal continued, means that Pertamina does not always immediately adjust prices when global crude oil prices rise. The company continues to weigh the impact on the public alongside its capacity to absorb the risk of declining profits.

“So, an SOE differs from a private company because, for private firms, the consideration is purely profit-driven and commercial,” he said.

Faisal assessed that Pertamina is likely still attempting to mitigate the impact of the rising ICP as long as the risks of declining profits and business pressure remain manageable. Price adjustments are only implemented when the burden the company must absorb becomes too great.

In principle, non-subsidised fuel follows international price developments. When crude oil prices rise significantly above economic viability, price adjustments ultimately become a difficult step to avoid.

“In my opinion, this Pertamax price hike was very much predicted; it was just a matter of time,” he added.

He further noted that Pertamax has become one of the fuel types with an increasing consumption share in Indonesia. Its portion is estimated to have reached over 30 per cent of total national fuel consumption and is approaching 40 per cent.

The large number of users means that any change in Pertamax pricing has a widespread impact on society. Faisal assessed that while delaying price adjustments can alleviate pressure in the short term, it risks making the eventual price surge even larger when it is finally implemented.

Previously, on Tuesday night (09/06/2026), PT Pertamina Patra Niaga announced price adjustments for non-subsidised fuels, specifically Pertamax and Pertamax Green, following periodic evaluations considering global oil price developments and economic market prices. The decision was coordinated with the government as the regulator.

Starting 10 June 2026, the price of Pertamax (RON 92) rose from Rp 12,300 per litre to Rp 16,250 per litre, while Pertamax Green 95 rose from Rp 12,900 per litre to Rp 17,000 per litre. Meanwhile, the prices of Pertalite remain at Rp 10,000 per litre and Biosolar remains at Rp 6,800 per litre, in accordance with the regulations for subsidised fuel.