TEMPO.CO, Jakarta - Indonesia's Institute for Development of Economics and Finance (Indef) assesses that the main impact of the rise in Pertamax fuel prices does not stem from inflationary pressure, but on the purchasing power of the people. The main impact will hit hard on the middle class, who are the main users of this type of fuel.
The Head of the Indef's Macroeconomics and Finance Center, M. Rizal Taufikurahman, stated that amidst Bank Indonesia's benchmark interest rate at 5.50 percent, the depreciation of the rupiah, and the increasing cost of living, the rise in Pertamax prices has the potential to increase household transportation expenditure. This condition is considered capable of reducing real income of the community and restraining domestic consumption, which has contributed to over 50 percent of Indonesia's Gross Domestic Product (GDP).
"The greater impact actually occurs on the purchasing power of the people, especially the middle class as the main users of Pertamax fuel," said Rizal to Tempo on Friday, June 12, 2026. Therefore, according to him, the biggest risk of the rise in Pertamax prices is considered not to be a surge in inflation, but a weakening of the community's purchasing power and a slowdown in consumption, which is one of the main drivers of economic growth.
On the other hand, Rizal estimated that the direct impact of the rise in Pertamax prices on inflation is relatively limited. Pertamax is not the main fuel used by public transportation or for logistics distribution, so its contribution to general inflation is not as significant as subsidized fuel.
However, the rise in Pertamax prices, reaching 32.1 percent, still has the potential to create secondary effects. The increase can raise operational costs in the service, transportation, micro, small, and medium enterprises (MSMEs) sectors, as well as drive inflation expectations amid annual inflation that had reached 3.08 percent in May 2026.
Rizal stated that the experience of the rise in Pertamax prices in December 2025, when the fuel price reached Rp12,750 per liter, showed that the policy did not become the main trigger for a national inflation spike. However, even though the Pertamax price dropped again in January and February 2026, the price increase still put pressure on the transportation and service sectors through adjustment of operating costs.
Thus, Rizal assessed that the biggest impact of the rise in Pertamax prices does not come from a direct influence on the Consumer Price Index (CPI), but from the gradual adjustment of prices of goods and services as operational costs of businesses increased.
Prior to this, PT Pertamina Patra Niaga raised the prices of non-subsidized oil products, Pertamax and Pertamax Green, on Wednesday, June 10, 2026. The increased non-subsidized fuel prices include Pertamax (RON 92), from Rp 12,300 to Rp 16,250 per liter. Then Pertamax Green 95 (RON 95), increased from Rp 12,900 to Rp 17,000 per liter.
"Adjustments to the prices of Pertamax and Pertamax Green were made after an evaluation process in accordance with the price formula set by the government," stated the Corporate Secretary of Pertamina Patra Niaga, Roberth M.V. Dumatubun in a written statement, as quoted by Antara.
The rise in Pertamax and Pertamax Green fuel prices, according to Pertamina, was decided after coordinating with the government as the regulator. Furthermore, decisions regarding prices were made in accordance with periodic evaluation mechanisms by considering developments in world oil prices and the market economy. Roberth explained that adjustments to non-subsidized fuel prices were made in accordance with applicable regulations.
Read: Pertamax Fuel Sales Predicted to Drop 10 Percent After Price Hike
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