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🇮🇩 Indonesia /Economy & Trade

The Blessing of Pertamax Price Hike

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

Analysis Sources not specified Context piece
  • Indonesia's fuel price hike for Pertamax has created a stark contrast at gas stations, with long queues for subsidized Pertalite and empty lanes for the premium fuel.
  • While critics decry the price increase as a blow to public purchasing power, the author argues it serves as a necessary "shock therapy" to promote social honesty and efficiency.
  • The price adjustment is seen as a way to curb the illusion of middle-class status and encourage individuals to align their consumption with their actual economic capacity.

The recent surge in Pertamax fuel prices in Indonesia has dramatically reshaped the landscape at local gas stations. While the premium Pertalite fuel now sees lengthy queues of motorcycles and cars, many of them the latest models, idling with engines off to conserve fuel, the Pertamax lanes remain conspicuously deserted. Only a handful of luxury cars trickle in, receiving prompt service.

For me, the increase in Pertamax prices actually has a blessing and is the right policy to be carried out by the Ministry of ESDM.

— Fathin Robbani SukmanaExpressing a positive view on the fuel price hike.

This scene, occurring in June 2026, has been labeled a "tragedy" by economic observers and social media activists. The jump in Pertamax prices from Rp12,300 to Rp16,250 per liter is viewed as a significant blow to the public's purchasing power. Media outlets have focused on the struggles of ride-hailing drivers and small business owners whose profits are being eroded, fueling protests and student demonstrations concerned about potential shortages of subsidized fuel due to mass consumption shifts.

However, the author proposes a different perspective, viewing the Pertamax price increase not as a disaster but as a "blessing" and a precisely executed policy by the Ministry of Energy and Mineral Resources. This "shock therapy," as it's termed, is intended to force the nation to confront its social classes honestly. The price hike implicitly filters individuals, promoting a more honest, efficient, and rational approach to consumption.

The increase in non-subsidized fuel prices actually provides a healthy moral slap through a simple analogy about village feasts.

— Fathin Robbani SukmanaIntroducing an analogy to explain the social impact of the price increase.

This adjustment is likened to a village wedding where premium beef rendang is offered alongside regular chicken rice boxes. For years, organizers subsidized the rendang to keep its price close to the chicken meal, leading many villagers with modest incomes to splurge on the premium dish, only to worry about their finances later. When the rendang price triples due to scarcity, these individuals naturally opt for the chicken, a "moral restructuring" that encourages people to "know their place" economically and shed the pretense of being upper-middle class, often fueled by installment plans for vehicles they can barely afford.

We have long suffered from a sociological disease: the love of pretending to be upper-middle class.

— Fathin Robbani SukmanaDiagnosing a societal issue related to consumption and social status.
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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