Pertamina CEO: Pertamax Price Hike Considers Public Purchasing Power

State-owned oil and gas company PT Pertamina’s President Director, Simon Aloysius Mantiri, has explained the company’s rationale for raising the prices of non-subsidised fuels Pertamax and Pertamax Green. He stated the policy was influenced by global oil price volatility stemming from geopolitical dynamics in the Middle East. Pertamina previously increased the price of Pertamax (RON 92) from Rp 12,300 to Rp 16,250 per litre, while Pertamax Green 95 (RON 95) rose from Rp 12,900 to Rp 17,000 per litre. “This increase in non-subsidised fuel prices was implemented by considering global geopolitical dynamics and prevailing international market oil prices, while still taking into account the public’s purchasing power,” Simon said in a video statement uploaded to Pertamina’s official account on Thursday, 11 June 2026. Simon acknowledged the price hike has drawn public attention but stressed that Pertamina continues to consider the public’s purchasing power when setting non-subsidised fuel prices. He also confirmed that subsidised fuel prices remain unchanged, with Pertalite held at Rp 10,000 per litre and BioSolar at Rp 6,800 per litre, in accordance with government regulations. Media Wahyu Askar, Public Policy Director at the Center of Economic and Law Studies (Celios), said the Pertamax price increase from Rp 12,300 to Rp 16,250 per litre could have consequences, particularly as Pertalite remains at Rp 10,000 per litre. He suggested this situation could encourage Pertamax consumers to switch to Pertalite, potentially increasing demand for subsidised fuel and burdening the government’s subsidy budget. “There are two choices: consumers continue buying Pertamax at a higher price or switch to Pertalite. As a result, the Pertalite quota will increase and cause fuel subsidies to swell,” he said in a written statement on Wednesday, 10 June 2026. Media assessed that restricting Pertalite purchases via the MyPertamina QR code will only be effective if there are no implementation leaks, noting that Pertalite sales outside official filling stations are still found. He also criticised the view that the Pertamax price hike only affects high-income groups, pointing out that many Pertamax users are from the middle class, such as ride-hailing drivers, teachers, and workers who choose better quality fuel for their vehicles. He estimated the non-subsidised fuel price increase could further depress the purchasing power of the middle class and vulnerable groups, and potentially drive up food prices and worsen economic conditions. Meanwhile, Finance Minister Purbaya Yudhi Sadewa viewed the inflationary impact of the Pertamax price hike as relatively limited, stating, “Because Pertamax is not used for freight transport and public transport.” However, Achmad Nur Hidayat, an economist at Universitas Pembangunan Nasional ‘Veteran’ Jakarta, considered this perspective an oversimplification of conditions on the ground. He argued that not all Pertamax users are affluent, as some choose it for fuel quality while others struggle to obtain Pertalite due to purchase restrictions. He added that limited public transport also forces people to rely on private vehicles. Achmad therefore concluded the impact of the Pertamax price hike cannot be ignored, suggesting it can also influence public expectations regarding the prices of other goods and services. “When the price of Pertamax rises, price expectations move as well. Price increases do not only come from filling stations, but also from food stalls, markets, or repair shops.”