Pertamax Price Rise: A Realistic Step to Safeguard the Fiscal Position and Energy Security, Say Experts

A number of academics have assessed the adjustment of Pertamax (RON 92) prices to Rp16,250 per litre from 10 June 2026 as a realistic step to maintain the country’s fiscal health amidst rising global oil prices and an increasing energy compensation burden. Energy economics observer from Gadjah Mada University (UGM), Fahmy Radhi, stated that Pertamax is essentially a non-subsidised fuel whose selling price follows market mechanisms and global oil price movements. “RON 92 or Pertamax is actually a non-subsidised fuel. Its price is usually determined based on market mechanisms, in accordance with its economic price,” said Fahmy. According to him, the government had held back the Pertamax price adjustment over the past several months to cushion the economic impact on the public. However, as pressure on the state budget mounts, the fiscal space to maintain that price has become increasingly limited. “The government can actually no longer hold back from maintaining the Pertamax price to prevent it from rising, because the fiscal burden is getting heavier,” Fahmy stated. He assessed that the policy could help reduce pressure on the State Revenue and Expenditure Budget (APBN). However, the government still needs to anticipate the potential shift of consumers from Pertamax to Pertalite, which is still sold at a lower price. According to Fahmy, the widening price gap could potentially encourage some Pertamax users to switch to subsidised fuel. Therefore, proper supervision and targeted subsidy distribution are important factors in achieving fiscal efficiency goals. A similar view was expressed by economist from the State University of Manado (UNIMA), Robert Winerungan. He assessed the Pertamax price adjustment as part of the government’s effort to maintain the APBN balance amidst global economic uncertainty. “The government is trying to reduce the burden on the APBN because Pertamax is actually a fuel that should not receive government intervention. The one that indeed gets government intervention is Pertalite,” said Robert. In addition to safeguarding the fiscal position, Robert assessed that the price adjustment is also necessary to reduce the gap between Indonesia’s fuel prices and those of other Southeast Asian countries. According to him, a price disparity that is too wide could potentially lead to various forms of misuse that harm the state. On the other hand, Robert estimated that the socio-economic impact of the Pertamax increase is relatively limited compared to if the government were to raise the prices of Pertalite or Diesel. This is because the majority of Pertamax users come from middle-class groups and owners of vehicles with newer specifications. “I think the impact will not be too large. Most of the lower-middle class already use Pertalite. Pertamax is generally used by newer vehicles,” he said. The Pertamax price adjustment occurs amidst a trend of rising global energy prices triggered by geopolitical uncertainty and movements in international crude oil prices. Nevertheless, fuel prices in Indonesia are still considered competitive compared to several countries in Southeast Asia. Based on average fuel price data in the ASEAN region converted to Rupiah using an exchange rate assumption of Rp18,100 per US dollar, Singapore recorded the highest price at around Rp43,100 per litre, followed by the Philippines at Rp27,500 per litre, and Cambodia and Thailand each at around Rp22,600 per litre. Meanwhile, the average fuel price in Vietnam is in the range of Rp13,400 per litre, Indonesia around Rp10,700 per litre, and Malaysia around Rp9,100 per litre. With the new price of Rp16,250 per litre, Pertamax has indeed increased. However, this price is still lower than the price of petrol in Singapore, the Philippines, Thailand, and Cambodia. Economists consider the policy of adjusting non-subsidised fuel prices to be part of an effort to maintain a balance between protecting public purchasing power and ensuring fiscal sustainability. Amidst the volatility of global oil prices, the government is deemed necessary to ensure energy subsidies remain focused on groups that truly need them so that the APBN remains healthy and room for development can be maintained.