Pertamax Price Hike May Strain Middle-Class Budgets, Economist Warns

The price of Indonesia's non-subsidized Pertamax fuel has seen a significant increase, with RON 92 rising from Rp12,300 to Rp16,250 per liter and Pertamax Green 95 (RON 95) from Rp12,900 to Rp17,000 per liter, effective June 10, 2026. This adjustment, while not expected to trigger extreme inflation, is a cause for concern regarding its impact on the daily living costs of the middle class.

Abra Talattov, an economist at the Institute for Development of Economics and Finance (Indef), noted that the effect on middle-class purchasing power might not be immediately apparent as a surge in national inflation. However, he cautioned that it will be felt in daily expenses. This comes at a time when living costs are already rising, as indicated by the annual inflation rate in May 2026, which stood at 3.08 percent year-on-year, up from 2.42 percent in April.

"This means that the public's consumption space has already begun to be squeezed before the latest Pertamax price increase is fully reflected in the following month's inflation," Abra stated. The government has justified the price adjustment by citing global energy market conditions, geopolitical dynamics, and distribution costs. They also emphasized that the new prices do not fully reflect economic costs, aiming to maintain public purchasing power. Meanwhile, subsidized fuels like Pertalite remain unaffected.

Abra further elaborated that the middle class is facing a "combination of pressures from transportation, food, education, installments, and household needs." The price adjustment for Pertamax, therefore, adds another layer to these existing financial burdens, impacting daily life more directly than a national inflation spike.