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🇮🇩 Indonesia /Economy & Trade

Indonesia's Pertamax Fuel Price Hike to Add 0.25% to Inflation: Central Bank

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Bank Indonesia (BI) estimates that the price increase of Pertamax (RON 92) fuel will contribute approximately 0.25% to national inflation in 2026.
  • Pertamax prices rose from Rp 12,300 to Rp 16,250 per liter, and Pertamax Green 95 from Rp 12,900 to Rp 17,000 per liter, effective June 10, 2026.
  • BI is monitoring global economic and geopolitical dynamics, particularly rising global oil prices impacting domestic energy costs, alongside imported inflation and volatile food prices.

Indonesia's central bank, Bank Indonesia (BI), forecasts that the recent price hike for non-subsidized Pertamax fuel will add pressure to national inflation, estimating a contribution of around 0.25% in 2026. The price of Pertamax (RON 92) increased from Rp 12,300 to Rp 16,250 per liter, while Pertamax Green 95 (RON 95) saw its price jump from Rp 12,900 to Rp 17,000 per liter, effective June 10, 2026.

For now, our calculation is that it contributes around 0.25 percent to inflation.

— Aida S. BudimanAida S. Budiman, Deputy Governor of Bank Indonesia, estimating the inflationary impact of the Pertamax price increase.

BI Deputy Governor Aida S. Budiman highlighted that inflationary pressures remain a concern amid global economic and geopolitical shifts. She noted that rising global oil prices directly influence domestic energy costs, particularly "administered prices" – those set by the government. While Pertamax and Pertamax Turbo prices increased, other fuel types like Dexlite and Pertamax Dex saw price decreases, reflecting the volatility of global energy markets.

Beyond energy prices, BI is also closely watching inflation risks stemming from imported goods and volatile food commodities. However, Budiman indicated that the impact of rising fertilizer prices on inflation is currently limited, as domestic fertilizer production capacity is sufficient to meet national demand. "There is the factor of fertilizer prices, but its contribution to inflation is still very minimal because domestic production is still adequate," she stated.

The global spillover is directly visible in administered prices or prices determined by the government. There are non-subsidized fuel prices that have increased, such as Pertamax and Pertamax Turbo, but there are also those that have decreased, such as Dexlite and Pertamax Dex. These movements will follow the development of global energy prices.

— Aida S. BudimanAida S. Budiman explaining the connection between global energy prices and domestic fuel costs.

The adjustments in fuel prices are part of a broader economic landscape where BI continues to manage inflation while navigating global uncertainties. The bank's focus remains on maintaining price stability to support sustainable economic growth.

There is the factor of fertilizer prices, but its contribution to inflation is still very minimal because domestic production is still adequate.

— Aida S. BudimanAida S. Budiman addressing the impact of fertilizer prices on inflation.
DistantNews Editorial

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

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