Fuel Price Hike Will Not Trigger An Inflation Spike: Govt

RRI.CO.ID, Jakarta - Indonesian Finance Minister Purbaya Yudhi Sadewa assessed that the increase in Pertamax prices will not trigger an inflation spike. He said the domino effect of the policy on goods and services prices would be very limited.

“The majority of Pertamax users drive mid‑ to high‑end private vehicles. These are not logistics vehicles or public transportation, which are essential for distributing basic goods,” Minister Purbaya said in a written statement on Thursday, June 11, 2026.

He explained that the national production and logistics cost structure is projected to remain unaffected. Consequently, the inflation rate throughout 2026 is expected to stay stable and within the assumptions of the State Budget.

“The inflationary impact should be limited, because it’s not for public transportation. Freight transport doesn’t use Pertamax,” Minister Purbaya added.

However, concerns have emerged that the rise in Pertamax prices could prompt consumers to switch to cheaper, subsidized fuel such as Pertalite. This shift is feared to further strain the subsidized fuel quota.

In response, Minister Purbaya said the government has prepared comprehensive mitigation measures. “Oversight of subsidized fuel distribution will be tightened to ensure it reaches the intended recipients. This will guarantee that subsidized fuel remains accessible to eligible citizens and that the quota is maintained through the end of the year,” he said.

Meanwhile, Mirae Asset Sekuritas currency market analyst Jessica Tasijawa noted the potential impact of higher non‑subsidized fuel prices on the public. “The increase in non‑subsidized fuel prices could further suppress purchasing power and consumption, and increase inflation risks,” she said.

She added that inflationary risks arise from rising transportation costs. “Persistently high energy prices could also add fiscal pressure through increased energy subsidies and compensation,” Jessica said.

On Tuesday, June 9, Pertamina raised the price of Pertamax by IDR 3,950 to IDR 16,250 per liter. The price of Pertamax Green 95 also rose by IDR 4,100 to IDR 17,000 per liter.

The increase in Pertamax prices follows the rise in global oil prices, prompting Pertamina to adjust its prices to reflect market conditions. (Gusti Panji)