Pertamax Price Hike Seen as Momentum for Middle-Class Lifestyle Evaluation

The recent increase in the price of Pertamax fuel presents a significant opportunity for Indonesia's middle class to reassess their consumption habits, according to an economic observer. Khairil Anwar, an economist at Mulawarman University in East Kalimantan, stated that the price hike for Pertamax (RON 92), from Rp12,300 to Rp16,250 per liter, serves as a critical moment for the middle and upper-middle classes, who are the primary consumers of this fuel, to reduce expenditures driven by lifestyle choices.

Anwar explained that the government has limited options due to fiscal constraints and Indonesia's status as a non-oil exporting nation. Despite the substantial price increase, he observed that both the public and businesses appear better prepared to handle economic pressures. This resilience stems from lessons learned during past crises, such as those in 2008, 2015, and the COVID-19 pandemic, which have equipped businesses with strategies to protect their value.

He also noted that middle-class consumers should have anticipated this scenario by shifting to more fuel-efficient vehicles or adopting frugal living practices. Unlike the price increase of subsidized diesel fuel, which can trigger a surge in the prices of goods due to its impact on national logistics, the hike in Pertamax prices primarily affects personal mobility.

As a solution, Anwar recommended that the government promptly disburse social assistance to maintain public purchasing power. Additionally, he emphasized the importance of intensifying technical education, in collaboration with competent workshops, on methods to reduce vehicle operational costs. The article also notes that this content was processed with AI assistance.