Indonesia’s Finance Minister Purbaya Yudhi Sadewa acknowledged Thursday that the recent increase in Pertamax prices could prompt some motorists to switch to subsidized Pertalite fuel, although the government has yet to calculate how much the shift could affect energy subsidy spending under the 2026 state budget.
Speaking at the parliamentary complex in Jakarta, Purbaya said it was inevitable that some consumers would change their purchasing habits following the price adjustment, but he emphasized that the migration would likely be limited.
“We haven’t calculated it, but certainly some percentage of consumers will switch,” Purbaya told reporters.
He said many Pertamax users choose the higher-octane gasoline because it matches the technical specifications of their vehicles, making a wholesale shift to subsidized fuel unlikely despite the widening price gap.
The Finance Ministry, however, has not prepared projections on the proportion of motorists expected to move from Pertamax to Pertalite or the resulting impact on the government’s fuel subsidy bill.
“We haven’t calculated it yet. Perhaps you should ask Minister Bahlil, who understands that issue,” Purbaya said.
According to the finance minister, forecasting fuel consumption patterns and managing subsidized fuel quotas fall primarily under the authority of the Ministry of Energy and Mineral Resources rather than the Finance Ministry.
Purbaya also sought to ease concerns that the higher Pertamax price could significantly accelerate inflation, arguing that the premium-grade gasoline is not widely used by commercial freight operators or public transportation services.
“The impact on inflation should be relatively limited because Pertamax is not used for freight transportation,” he said.
He explained that inflationary pressure typically intensifies when logistics and distribution costs increase, while most commercial transport fleets rely on other types of fuel.
Purbaya declined to elaborate on measures the government may adopt to prevent a sharp increase in Pertalite consumption or to safeguard subsidized fuel quotas, again referring questions to the Energy Ministry.
“You need to ask Minister Bahlil. There should be another mechanism. If I’m not mistaken, it involves nozzle control. Minister Bahlil would know the details,” he said.
The latest Pertamax price increase has sparked widespread discussion on social media, where some users have encouraged motorists to switch to Pertalite as the price difference between the two gasoline products has widened considerably.
The government has maintained that subsidized fuel prices remain unchanged. Pertalite continues to sell for 10,000 rupiah (about 61 U.S. cents) per liter, while subsidized Biosolar diesel remains priced at 6,800 rupiah per liter.
Meanwhile, the retail price of Pertamax has increased to 16,250 rupiah per liter from the previous 12,300 rupiah, representing one of the largest recent adjustments to Indonesia’s non-subsidized gasoline prices.
The government’s next challenge will be balancing market dynamics with fiscal sustainability. While officials believe the immediate inflationary impact will remain limited, any substantial migration toward subsidized fuel could increase pressure on the state budget and require closer coordination between the Finance Ministry and the Ministry of Energy and Mineral Resources to ensure subsidy quotas remain under control.
