JAKARTA — The government is keeping subsidized fuel prices unchanged so subsidized fuel remains affordable for people who still rely on Pertalite, Bio-Solar, and 3-kilogram LPG cylinders. The policy is seen as helping preserve purchasing power while the cost of living remains sensitive to energy price changes.
The assessment came from Abdul Rahman, Secretary of the Economic Policy Division at the Golkar Party’s central board, in Jakarta on Sunday. He said the decision was appropriate because it touches daily needs directly, especially in public transportation and goods distribution.
Subsidized fuel prices and purchasing power
According to Abdul Rahman, keeping subsidized fuel prices in place shows the government’s support for the wider public. He pointed out that public transport, freight services, and logistics distribution in Indonesia still depend heavily on subsidized fuel.
“This policy shows the government’s support for the wider public,” Abdul Rahman said. He added that the decision not to raise subsidized fuel prices is a relevant step to help restrain inflationary pressure.
The logic is simple. If the fuel used by people and goods transport does not rise, pressure on costs along the supply chain also stays in check. The effect may not be felt instantly across every sector, but it can spill over into distribution costs and basic necessities.
Abdul Rahman also stressed that goods and services distribution in Indonesia is still dominated by subsidized fuel. For that reason, he said, adjustments in Pertamax prices will not have a major impact on logistics costs or everyday goods prices.
Pertamax increase seen as limited in impact
On another point, Abdul Rahman urged the public to view the increase in Pertamax prices more calmly. He said Pertamax is a non-subsidized fuel that follows economic value, including changes in global crude oil prices or the Indonesian Crude Price (ICP).
He said ICP movements are strongly influenced by international geopolitical dynamics, including conflict in the Strait of Hormuz, which has pushed global oil prices higher. In that climate, fuel price adjustments for non-subsidized products are seen as inseparable from pressure in the international energy market.
“The increase in Pertamax prices was not an easy decision. The longer Pertamina holds prices below economic value, the greater the financial burden borne by Pertamina and the government,” he said.
He added that Pertamax consumers generally come from middle- to upper-income groups that have more room to adjust spending patterns. For that reason, he said, the impact on national inflation is relatively limited.
“The increase in Pertamax will not significantly affect inflation because public transport, both for people and goods, still uses subsidized fuel,” he said.
Subsidized fuel supply and queue risks
Abdul Rahman also focused on subsidized fuel supply in the field. He urged the government to ensure the availability of Pertalite, Bio-Solar, and 3-kilogram LPG cylinders in all regions so people do not face shortages or long queues.
Shortages of subsidized fuel often trigger a chain reaction. People have to wait longer at fuel stations, distribution schedules are disrupted, and small business activity slows down. In his view, that kind of situation burdens the public more than the price gap itself.
“We also urge the government to continue ensuring that subsidized fuel supplies remain available and accessible to the public. Do not let shortages or queues occur in a way that burdens people,” Abdul Rahman said.
He said supply stability matters just as much as pricing policy. Prices that stay fixed without sufficient stock still leave problems on the ground. People need certainty, not just numbers that do not change on paper.
Global pressure and incentive packages
In Abdul Rahman’s view, the government also needs to strengthen policy packages and economic incentives to keep business activity moving. The focus, he said, should especially be on the middle class, which serves as a main engine of national growth.
This group plays a major role in domestic consumption. When their purchasing power is maintained, small and medium-sized businesses keep moving. But if living-cost pressure becomes too heavy, consumption can slow and businesses will feel the impact.
He said economic policy packages and incentives need to be expanded further so public activity can continue. “That way, the purchasing power and economic activity of the middle class can continue to be maintained amid various global economic challenges,” he said.
At this point, the decision to keep subsidized fuel prices unchanged acts as a buffer. Not the only fix, of course. But for many households, it gives them room to breathe while global energy prices remain unsettled.
ANTARA reported Abdul Rahman’s comments as a response to energy policy that continues to hold subsidized fuel prices steady amid global economic pressure. For consumers, the signal is clear: as long as Pertalite, Bio-Solar, and 3-kilogram LPG are protected, daily burdens still have a brake. And that brake matters.
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