Economist Urges Social Aid to Counter Fuel Price Hikes in Indonesia

Indonesia should swiftly implement cash social assistance programs to cushion the impact of rising fuel prices, according to Fakhrul Fulvian, Chief Economist at Trimegah Sekuritas Indonesia. He warned that the price increases for Pertamax and Pertamax Green could significantly affect public consumption.

"The government must immediately prepare direct cash assistance as an economic buffer for vulnerable groups, the lower-middle class, and communities most affected by the rising costs of transportation and daily necessities," Fulvian stated in a written statement on Thursday, June 11, 2026.

He noted that transportation costs, with fuel as a major component, typically account for 10-15 percent of household spending, making the price hike's impact substantial. Fulvian believes Indonesia's advanced technology, including digital payment systems and integrated data, can facilitate rapid and accurate aid distribution. "The faster the assistance 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.

Pertamax and Pertamax Green prices rose by over 30 percent starting June 10, 2026. Pertamax (RON 92) increased from Rp 12,300 to Rp 16,250 per liter, and Pertamax Green 95 (RON 95) rose from Rp 12,900 to Rp 17,000 per liter. Pertamina Patra Niaga stated the adjustments followed government-set pricing formulas.