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🇮🇩 Indonesia /Economy & Trade

Experts estimate Pertamax economic price at Rp16,800 as government holds retail price

From Republika · () Indonesian

Translated from Indonesian and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • Economists estimate Pertamax’s economic price at Rp16,700 to Rp16,800 per liter, compared with a Jakarta retail price of Rp15,950.
  • Economist Yusuf Rendy Manilet says the gap reflects a government and Pertamina decision to protect consumers’ purchasing power, but it still weighs on Pertamina’s finances.
  • An ITB energy expert says Indonesia produces about 580,000 barrels of oil daily against demand of 1.6 million barrels, leaving the country reliant on imports.

Pertamax is selling in Jakarta for Rp15,950 per liter, even though economists and energy specialists estimate its current economic price at between Rp16,700 and Rp16,800.

Yusuf Rendy Manilet of the Center of Reform on Economics said the estimate includes global crude prices, the rupiah exchange rate, distribution and storage costs, profit margins, and taxes. That leaves a gap of about Rp750 to Rp900 per liter between the economic calculation and the price paid by consumers.

Keeping Pertamax at Rp15,950 per liter means there is a gap of around Rp750 to Rp900 per liter that is not yet reflected economically in the selling price.

· Yusuf Rendy ManiletThe CORE economist explained the difference between Pertamax’s estimated economic price and its retail price.

“Keeping Pertamax at Rp15,950 per liter means there is a gap of around Rp750 to Rp900 per liter that is not yet reflected economically in the selling price,” Yusuf said. He described the decision by the government and Pertamina to hold the price in early September as a deliberate effort to protect purchasing power and social conditions.

Keeping Pertamax prices unchanged in early September is, in my view, a fairly deliberate choice to protect purchasing power and social conditions.

· Yusuf Rendy ManiletHe assessed the government and Pertamina decision to hold the fuel price.

“Keeping Pertamax prices unchanged in early September is, in my view, a fairly deliberate choice to protect purchasing power and social conditions,” he said. Pertamax is not subsidized, but Yusuf said the difference still has to be absorbed within Pertamina’s finances. In the short term, he said, the company can manage the pressure, partly because other non-subsidized fuel products have already been repriced.

A prolonged gap could instead squeeze Pertamina’s margins, cash flow, profits, and investment capacity, particularly in upstream operations and refining. Bonar Tua Halomoan, a professor at the Bandung Institute of Technology, linked the burden to Indonesia’s oil deficit. Domestic production stands at about 580,000 barrels per day, compared with national demand of 1.6 million barrels, forcing the country to cover much of its needs through imports. Rising global oil prices and geopolitical disruptions can add further pressure to both procurement and fuel affordability.

Our production is only about 580,000 barrels per day, while our needs from Sabang to Merauke are 1.6 million barrels.

· Bonar Tua HalomoanThe ITB professor described the gap between domestic oil production and national demand.
About this summary

Originally published by Republika in Indonesian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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