Economist Asks Government to Ensure Subsidies Remain Targeted After Pertamax Price Hike

Indonesia has seen a notable price adjustment for its non-subsidized fuel, Pertamax. Effective June 10, 2026, Pertamax (RON 92) saw its price jump from Rp12,300 to Rp16,250 per liter, while Pertamax Green 95 increased from Rp12,900 to Rp17,000 per liter. These changes were implemented by Pertamina Patra Niaga.

In response to the fuel price hike, Senior Economist Wijayanto Samirin of Paramadina University has called on the government to ensure that subsidies for essential goods remain precisely targeted. He warned that the increase in non-subsidized fuel prices could prompt consumers to shift towards subsidized alternatives like Pertalite. "Ensuring fuel subsidies are right on target. Don't let those who are not eligible to consume Pertalite become consumers," Wijayanto stated.

Beyond fuel, Samirin advised the government to maintain current subsidies for electricity and LPG until the end of the year. He also stressed the importance of ensuring easy access to BPJS Kesehatan healthcare services. Furthermore, he recommended developing policies to manage housing loan installments, preventing increases that could burden households.

To cushion the impact of rising living costs, the government is also urged to ensure the availability of staple goods such as rice and cooking oil at affordable prices. Wijayanto cautioned that failure to implement these measures could lead to soaring inflation, widespread public hardship, and potential social unrest. "If these things do not happen, it is feared that inflation will skyrocket, people will have difficulty living, and it could lead to chaos," he concluded.