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🇮🇩 Indonesia /Economy & Trade

Indonesia Explains Non-Subsidized Fuel Price Hike Amid Global Oil Volatility

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

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  • Indonesia's Cabinet Secretary explained the recent increase in non-subsidized fuel prices, including Pertamax and Pertamax Green.
  • The price hikes are attributed to rising global oil prices, influenced by the conflict between the US, Israel, and Iran.
  • Subsidized fuel prices for Pertalite and Solar remain unchanged, with the government implementing policies to protect purchasing power.

Indonesia's Cabinet Secretary, Teddy Indra Wijaya, has clarified the reasons behind the recent surge in prices for non-subsidized fuels, specifically Pertamax and Pertamax Green, which saw significant increases outside the usual monthly adjustment schedule.

It means that the price of Pertamax must follow the world oil prices

— Teddy Indra WijayaExplaining the reason for the price increase of non-subsidized Pertamax fuel.

Wijaya explained that Pertamax, being a non-subsidized fuel, must align with fluctuations in global oil prices. The price of Pertamax RON 92 jumped from Rp12,300 to Rp16,250 per liter, while Pertamax Green 95 rose from Rp12,900 to Rp17,000 per liter. These adjustments occurred on Wednesday, June 10, 2026, deviating from Pertamina's standard practice of price announcements on the first of each month.

The world oil prices have risen drastically since March, but the government has been holding back the increase for months

— Teddy Indra WijayaHighlighting the government's efforts to mitigate the impact of rising global oil prices on subsidized fuels.

The surge in global oil prices, reportedly exacerbated by the conflict involving the United States, Israel, and Iran, is cited as the primary driver. Despite these global pressures, the government has maintained the prices of subsidized fuels, Pertalite and Solar, at Rp10,000 and Rp6,800 per liter, respectively. Wijaya noted that the government had absorbed price increases for months to shield consumers.

Meanwhile, the non-subsidized prices adapt to the existing market prices. Surely, these calculations will be done wisely by our business partners, both Pertamina and other private actors

— Bahlil LahadaliaAddressing the basis for non-subsidized fuel price adjustments.

Minister of Energy and Mineral Resources Bahlil Lahadalia added that the price adjustments for non-subsidized fuels were based on thorough calculations by both state-owned and private enterprises. He assured that subsidized fuel and LPG prices would not change, emphasizing that the government is developing policies to safeguard public purchasing power. These statements were made amidst student protests in Jakarta on Friday night, June 12, 2026, where lowering fuel and necessity prices was a key demand.

Therefore, to maintain people's purchasing power, especially for subsidized fuels, we will not increase the prices at all. Meanwhile, adjustments will be made for the others

— Bahlil LahadaliaReassuring the public about the government's commitment to maintaining the affordability of subsidized fuels.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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