Jakarta: Indonesians are expressing shock and discontent as gasoline prices surge by 32%. The Indonesian government and the national energy company, Pertamina, announced a 32.1% price increase for unleaded 92 octane gasoline, effective today, sparking alarm and outrage among the public, particularly the middle class who rely on this type of fuel for daily transportation.
According to Thai News Agency, the price of unleaded 92 octane gasoline, known as Pertamax, jumped from 12,300 rupiah per liter to 16,250 rupiah, approximately 29.61 baht, effective immediately. The government attributed the increase to the severe impact of conflict and war in the Middle East on global energy and crude oil prices. Additionally, the significant weakening of the Indonesian rupiah to over 18,000 rupiah per US dollar has increased the burden and cost of energy imports. The government deemed the price hike necessary to alleviate pressure on the national budget structure and stabilize the economy by reducing previously capped costs.
The sudden 32% price increase for Pertamax fuel has significantly impacted the public, especially working-class and middle-class individuals who use private cars and motorcycles. Many citizens report that the cost of living and consumer goods prices were already on the rise, while their income levels remained unchanged. In response, private foreign gas stations such as BP-AKR and Vivo also raised the price of their 92 octane fuel on the same morning to maintain profitability. To mitigate the impact on low-income groups and public transportation, subsidized fuels such as Pertalite 90 octane gasoline remain fixed at 10,000 rupiah per liter.
In the days leading up to the fuel price hike, Indonesia's central bank unexpectedly raised its policy interest rate to 5.50% in an effort to support the currency and curb inflation. Meanwhile, the government began considering measures to reduce domestic energy consumption, including proposals for employees to work from home at least one day a week.