Why Social Assistance Is Needed to Cushion the Pertamax Price Hike

The increase in fuel prices for Pertamax to Rp 16,250 per litre and Pertamax Green to Rp 17,000 per litre poses a risk to public consumption. Trimegah Sekuritas Indonesia Chief Economist Fakhrul Fulvian assessed that the government must immediately offset the increase with a cash social assistance programme that is fast, well-targeted, and capable of maintaining purchasing power. He added that it must be ensured that affected communities do not bear the entire burden of the adjustment.

“The government must promptly prepare direct cash assistance as an economic cushion for vulnerable groups, the lower middle class, and those most affected by rising transportation and daily living costs,” he said in a written statement on Thursday, 11 June 2026.

Based on data from the National Socio-Economic Survey by Statistics Indonesia, the transportation group typically accounts for around 10 to 15 percent of total household consumption, with fuel being the largest component, meaning the impact of the price hike could be significant. Fakhrul assessed that Indonesia currently possesses much better technological capabilities. The digitalisation of payment systems, integration of population and banking data, and the development of artificial intelligence enable aid to be distributed more quickly and accurately.

Aid distribution should be carried out immediately after the price increase takes effect to prevent too deep a decline in household consumption. “The sooner the aid is provided, the smaller the risk of a slowdown in public consumption. This is important because household consumption remains the backbone of Indonesia’s economic growth,” he said.

News of the increase for these two types of non-subsidised fuel first emerged on Tuesday evening, 9 June 2026. Pertamina Patra Niaga subsequently announced the price increase for Pertamax and Pertamax Green starting 10 June 2026. The increase exceeded 30 percent. The price of non-subsidised Pertamax (RON 92) rose by about 32 percent from Rp 12,300 to Rp 16,250 per litre, while Pertamax Green 95 (RON 95) increased by 31 percent from Rp 12,900 to Rp 17,000 per litre.

“The price adjustment for Pertamax and Pertamax Green was carried out after an evaluation process in accordance with the price formula set by the government,” said PT Pertamina Patra Niaga Corporate Secretary Roberth MV Dumatubun, as quoted from Antara.