Analyst says Pertamax hike meant to support rupiah, APBN

Public Policy Analyst at Universitas Padjadjaran Bonti Wiradinata said the increase in nonsubsidized fuel prices, including Pertamax, is tied to efforts to protect the rupiah against the U.S. dollar and to limit pressure on the APBN. He said Pertamax prices essentially track global oil movements and the rupiah exchange rate. When both remain under pressure for a long period, price adjustments are needed so the fiscal burden does not grow. Bonti said holding prices steady over the past few months had served as an economic and psychological buffer, but delaying too long risked adding to the burden on the state and energy companies. YLKI Executive Secretary Rio Priambodo called for the price increase to be matched by better product and service quality, including access to gas stations, distribution reliability, measurement accuracy and consumer service.