Indonesia's govt, DPR weigh stimulus after Pertamax price hike

Jakarta (ANTARA) - Indonesia's government and House of Representatives (DPR) are considering stimulus measures to cushion consumers from a sharp increase in Pertamax fuel prices, amid concerns over its potential impact on inflation and household spending.

"We have discussed this matter, and calculations are underway to determine whether incentives can be provided," House Commission XI Chairman Mukhamad Misbakhun told reporters in Jakarta on Wednesday.

Misbakhun said fuel price increases generally contribute to inflation, although authorities have yet to estimate the impact of the latest Pertamax adjustment.

He noted that Pertamax is primarily used by households rather than industry, making its inflationary effects different from those associated with industrial fuel consumption.

Even so, lawmakers and government officials are evaluating measures that could help consumers absorb the impact of higher fuel costs.

"Our focus now is identifying what type of stimulus the public needs," Misbakhun said.

Finance Minister Purbaya Yudhi Sadewa said earlier on Wednesday that the fuel-price increase is unlikely to significantly affect inflation.

"The inflationary effect should be relatively limited because Pertamax is not widely used for freight transportation or public transit," he said at the parliamentary complex.

Purbaya declined to comment on fuel subsidy quotas, saying the issue falls under the authority of Energy and Mineral Resources Minister Bahlil Lahadalia.

State fuel retailer Pertamina Patra Niaga announced new prices for Pertamax and Pertamax Green, effective Wednesday.

Pertamax rose to Rp16,250 (US$0.91) per liter from Rp12,300 (US$0.69), while Pertamax Green increased to Rp17,000 (US$0.95) from Rp12,900 (US$0.72). Subsidized Pertalite remains unchanged at Rp10,000 (US$0.56) per liter.

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Translator: I. Silfia, Tegar Nurfitra

Editor: Rahmad Nasution

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