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Indonesia absorbs fuel price hikes as tensions rise

Bogor, W Java (ANTARA) – As global tensions ripple through energy markets, a familiar anxiety might have been expected across Indonesia. Instead, at gas stations from Bali to Sumatra, the mood has been unexpectedly calm.Over the weekend of April 18, when state energy firm PT Pertamina raised prices on several non-subsidized fuels, Indonesians appeared to accept the changes with quiet pragmatism rather than panic buying or protest.Police monitoring across regions on April 19 reported orderly conditions at public fueling stations, with no signs of unrest or supply disruptions despite the sharp increases in fuel prices.In Bali’s Jembrana District, officers patrolled gas stations to ensure supply security and compliance following the price adjustments affecting Pertamax Turbo, Dexlite, and Pertamina Dex.Local police chief Commissioner I Ketut Sukadana said inspections confirmed that all three stations in his jurisdiction were operating normally, with adequate fuel stocks and adherence to the new pricing structure.Authorities also found no evidence of hoarding or illegal bulk purchases using containers such as jerrycans or drums, practices that sometimes emerge during periods of price volatility.Station operators reported sufficient reserves across fuel types, including Pertamax, Pertalite, diesel, Pertamina Dex, and biosolar, indicating that supply chains remained intact despite market pressures.Detailed stock levels reflected that stability. At Melaya Pantai station, Pertamax stood at 1.7 tons, Pertalite at 14 tons, diesel at 21.6 tons, and Pertamina Dex at 4 tons.Nearby Sumbersari station held 57.2 tons of biosolar, 23.4 tons of Pertalite, 11.7 tons of Pertamax, and 1.9 tons of Pertamina Dex, suggesting ample reserves for local demand.At Tuwed station, inventories included 12 tons of biosolar, six tons of Pertalite, two tons of Pertamax, and four tons of Pertamina Dex, further reinforcing the region’s supply resilience.“Overall conditions remain conducive,” Sukadana said, emphasizing that despite price changes, public response had been stable and manageable.A similar pattern emerged in Jambi Province, where regional police conducted coordinated inspections to ensure fuel availability and smooth distribution after the price adjustment.No hoardingJambi Police Spokesperson Senior Commissioner Erlan Munaji said field checks found no hoarding or illegal diversion of subsidized fuels, and distribution channels were functioning without disruption.He urged residents to remain calm, avoid excessive purchases, and trust government oversight mechanisms to maintain supply stability during the transition.Authorities intensified patrols across multiple districts, including Muaro Jambi, Tebo, Kerinci, Merangin, Bungo, and both West and East Tanjung Jabung.Monitoring efforts focused on stock levels, vehicle queues, and potential misuse of subsidized fuels, which remain critical to lower-income households and essential services.In Sungai Bahar, officers inspecting a station in Panca Bakti village found no illegal activity, though diesel supplies were temporarily depleted.Remaining stocks included 140 liters of Pertamax and 16,370 liters of Pertalite, highlighting localized fluctuations even as broader supply conditions stayed stable.The price increases themselves were steep. Indonesia’s crude oil benchmark, the Indonesian Crude Price, rose to US$102.26 per barrel in March, up US$33.47 from February.That surge translated into sharp adjustments. In Jakarta, Pertamax Turbo jumped to 19,400 rupiah per liter from 13,100 rupiah earlier in April.Dexlite rose to 23,600 rupiah per liter from 14,200, while Pertamina Dex increased to 23,900 rupiah per liter from 14,500.By contrast, prices for Pertamax (RON 92) remained at 12,300 rupiah per liter, while Pertamax Green held at 12,900.Subsidized fuels were unchanged, with Pertalite priced at 10,000 rupiah per liter and biosolar at 6,800, cushioning the broader population from direct impact.Necessary correctionEnergy economist Fahmy Radhi described the move as a necessary correction aligned with global market dynamics after earlier delays in adjusting non-subsidized fuel prices.He noted that such fuels are typically tied to market mechanisms, meaning increases in global oil prices inevitably drive domestic price adjustments.Fahmy argued the social impact would likely remain limited, as non-subsidized fuels are used less widely and are not central to transporting essential goods.“The effect on most people is not significant,” he said, pointing to the continued protection offered by subsidized fuel programs.Bhima Yudhistira Adhinegara of the Center of Economic and Law Studies suggested the hikes could accelerate a shift among wealthier consumers toward electric vehicles.He said higher fuel costs may encourage those already using premium fuels to consider alternatives that are more efficient and environmentally friendly.Yet the transition is uneven. Middle-income consumers face barriers, including rising electric vehicle prices tied to global supply chain disruptions and reduced government incentives in 2026.Bhima noted that geopolitical tensions, particularly around critical shipping routes, have increased production costs for electric vehicles, complicating adoption.As a result, Indonesia’s response to fuel price hikes reflects not only economic resilience but also the varied realities of its consumers, navigating a shifting energy landscape with cautious adaptation rather than alarm.Taken together, these developments highlight how Indonesia is navigating higher fuel costs with a measured balance of stability and adjustment, reflecting both economic resilience and the diverse realities of its consumers in an evolving global energy landscape.