How Indonesia Plans to Cushion Fuel Price Hike

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Residents queue to receive a social assistance package of rice and cooking oil in Menteng District, Central Jakarta, June 10, 2026. Tempo/Ilham Balindra

TEMPO.CO, Jakarta - Social Affairs Minister Saifullah Yusuf stated that his ministry is still awaiting instructions from President Prabowo Subianto regarding the potential strengthening of social assistance programs (bansos) following the price hike of non-subsidized fuel since June 10, 2026.

"We are waiting for a policy directive from the President through the Coordinating Minister for Economic Affairs," Saifullah said when met at his office in Jakarta on Wednesday, June 17, 2026.

According to him, the government is currently weighing various social protection options if the economic pressure from the rising fuel prices begins to hit vulnerable groups. One scenario under consideration is a mid-year boost in social assistance, mirroring the measures taken in 2025.

Another option on the table, Saifullah noted, is expanding the pool of social assistance recipients toward the end of the year, similar to last year's strategy. "So today, of course, discussions are ongoing. The Ministry of Social Affairs is certainly prepared should a decision be made to either increase the amount or expand the number of social assistance recipients," he said.

Previously, several economists warned that the price hike of non-subsidized fuel, namely Pertamax rising to Rp16,250 per liter and Pertamax Green to Rp17,000 per liter, poses a real risk to public consumption.

Trimegah Sekuritas Indonesia Chief Economist Fakhrul Fulvian believes the government must immediately counter the price hike with a swift, targeted, and robust cash assistance program to safeguard public purchasing power.

According to him, it is necessary to ensure that affected communities do not bear the full burden of the adjustment alone. "The government must immediately ready direct cash assistance as an economic cushion for vulnerable groups, the lower-middle class, and those hardest hit by the rising costs of transportation and daily needs," he said in a written statement on Thursday, June 11, 2026.

Read: Indonesia's Middle Class Faces Biggest Hit From Pertamax Fuel Price Hike

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