Pertamax Price Hike Needed to Protect Rupiah and Ease State Budget Pressure

Indonesia has adjusted the price of its non-subsidized Pertamax fuel, raising it from Rp12,300 to Rp16,250 per liter, effective June 10, 2026. This decision is seen by policy observers as a strategic move to protect the rupiah's exchange rate against the US dollar and alleviate pressure on the state budget, which has been strained by the rupiah's weakening.

Bonti Wiradinata, a public policy observer from Padjadjaran University, explained that the price of Pertamax, being a non-subsidized fuel, naturally follows global oil prices and the rupiah's exchange rate. Prolonged pressure on these factors necessitates such adjustments to prevent greater fiscal burdens. Wiradinata acknowledged the government's efforts to maintain prices for several months, providing economic and psychological relief to the public. However, she cautioned that delaying the inevitable price adjustment would only amplify the financial strain on both the state and energy companies.

The observer further noted that keeping non-subsidized fuel prices below their economic value long-term could negatively impact cash flow and increase the need for energy compensation. Therefore, the price adjustment is considered a realistic step toward maintaining fiscal health. By aligning prices with economic realities, the government aims to minimize potential overspending on energy subsidies and ensure the state budget can prioritize other essential expenditures.