April 21, 2026 | 10:48 am
TEMPO.CO, Jakarta - The middle-class households are the most burdened by the surging prices of non-subsidized fuel and LPG, according to Mohammad Faisal, the executive director of the Center of Reform on Economics (CORE).
Faisal said the price hikes directly affect middle-class daily spending, especially for non-subsidized LPG, as commonly used by the majority of this class group.
Meanwhile, the relative impact of the non-subsidized fuel price hike for middle-class households is limited, as a significant increase is imposed for high-specification fuel such as RON 98 and above. "The consumers are mostly from the upper class," said Faisal when contacted on Monday, April 20, 2026.
Jet fuel price increase is also likely to affect the middle-class communities due to a potential airfare hike.
Overall, according to Faisal, the rise in energy prices will dampen the purchasing power of the middle class and have an impact on the production sector. This is because the consumption of the middle class is a primary pillar of economic activity.
In the short term, Faisal emphasized the importance of maintaining the stability of food prices to alleviate pressure on the middle class. He believes that the government's decision not to raise subsidized fuel prices is appropriate in restraining inflation, especially in the food sector.
"Subsidized fuel price hike usually leads to food inflation, which will impose greater pressure on the middle class," he stated.
Meanwhile, in the medium to long term, he stated that the government must focus on strengthening household income through formal job creation. According to Faisal, the middle class has been under pressure in recent years—even declining since the pandemic.
"Government programs need to target job creation, particularly formal employment, as this has the greatest impact on the purchasing power of the middle class," he said.
Earlier, the subsidiary of the state-owned oil and gas giant Pertamina, PT Pertamina Patra Niaga, increased the price of 12 kg non-subsidized LPG from Rp192,000 to Rp228,000 per cylinder, marking an increase of around 18.75 percent. This adjustment is the first since 2023 and took effect on April 18, 2026.
Price hikes also occurred for 5.5 kg non-subsidized LPG, from Rp90,000 to Rp107,000 per cylinder, marking an increase of around 18.89 percent. Pertamina also raised the prices of non-subsidized fuels Dexlite, Pertamina Dex, and Pertamax Turbo.
Read: Bahlil: Indonesia's LPG Supply Remains Secure Despite Price Hike
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