Agree with the increase in the price of Pertamax, UGM expert: The government can't hold it anymore

JAKARTA - A number of academics support the government's policy of raising the price of Pertamax (RON 92) to Rp. 16,250 per liter on Wednesday, June 10. This is considered a realistic step in the midst of increasing fiscal pressure due to the surge in world oil prices and global geopolitical uncertainty.

Energy economics observer at Gadjah Mada University (UGM), Fahmy Radhi, assessed that the price adjustment basically followed the character of Pertamax as a non-subsidized fuel which was determined by the market mechanism and had already been carried out by other countries.

"I think RON 92 or Pertamax is actually a non-subsidized fuel. The price is usually determined based on the market mechanism, in accordance with the economic price," said Fahmy when contacted.

According to him, the government had previously held off on raising the price of Pertamax since March 2026 to mitigate the economic impact on the community. However, as the burden of compensation that must be paid to Pertamina increases, the government's fiscal space becomes increasingly limited so that price adjustments are ultimately difficult to avoid.

"That's right. In fact, the government can no longer hold it to maintain the price of Pertamax so that it doesn't go up, because the fiscal burden is getting heavier," he said.

Fahmy assessed that the policy has the potential to help the government reduce pressure on the state budget. However, its effectiveness will depend heavily on the government's ability to control consumer transfers from Pertamax to Pertalite, which are still sold at a price of Rp. 10,000 per liter.

He reminded that the widening price disparity could encourage some Pertamax users to switch to subsidized fuel. Therefore, the government needs to strengthen regulations and supervision so that energy subsidies remain targeted and fiscal savings goals can be achieved.

In line with Fahmy, the economist of the State University of Manado (UNIMA), Robert Winerungan explained that the increase in Pertamax prices was part of the government's efforts to maintain the health of the state budget in the midst of an unstable global condition.

"The government is trying to reduce the burden on the state budget because Pertamax is actually a fuel that should not be subject to government intervention. What does get government intervention is Pertalite. So the government reduces the burden on the state budget by raising the price of RON 92," said Robert.

In addition to reducing fiscal pressure, Robert assessed that price adjustments are also important to maintain the balance of domestic fuel prices with neighboring countries. According to him, the too large price difference has the potential to open up opportunities for abuse and illegal trading practices that are detrimental to the country.

On the other hand, Robert estimates that the social and economic impact of the Pertamax increase will not be as large as if the government raised the price of Pertalite or Solar. This is because Pertamax users generally come from the middle class and owners of newer vehicles.

"I think the impact is not too big. Most people in the lower middle class are already using Pertalite. Therefore, I believe the impact is not too significant. Pertamax or RON 92 is generally used by newer vehicles," he said.

As is known, Indonesia is one of the countries in ASEAN that has delayed adjusting the price of non-subsidized fuel in the midst of a spike in world oil prices. Based on Trading Economics data for the period March-April 2026, there is a significant difference in fuel prices between ASEAN countries. The difference is influenced by various factors, ranging from energy subsidy policies, tax structures, to each country's ability to produce domestic oil and fuel.

List of the highest to lowest fuel prices in ASEAN:

The following is the conversion of the average fuel prices in ASEAN countries into rupiah (assuming a rate of Rp18,100 per US $):

1. Singapore: US$2.38/liter = Rp43.100/liter 2. Philippines: US$1.52/liter = Rp27.500/liter 3. Cambodia: US$1.25/liter = Rp22.600/liter 4. Thailand: US$1.25/liter = Rp22.600/liter 5. Vietnam: US$0.74/liter = Rp13.400/liter 6. Indonesia: US$0.59/liter = Rp10.700/liter 7. Malaysia: US$0.50/liter = Rp9.100/liter

Meanwhile, the price of Pertamax (RON 92) in Indonesia as of June 10, 2026 has been adjusted to Rp16,250 per liter. Despite the increase, the price is still below the price of gasoline in Singapore, the Philippines, Cambodia, and Thailand.

From the list, Singapore is still the country with the highest fuel prices in Southeast Asia. Fuel prices in the country are more than four times higher than in Malaysia and far above Indonesia. Meanwhile, Malaysia is ranked as the country with the cheapest fuel prices in the region, followed by Indonesia based on the average national fuel prices.