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Higher Fuel and Oil Costs Push Indonesia’s June Inflation to 0.44%

Nurul Darari by Nurul Darari
July 1, 2026
in Business
Reading Time: 2 mins read
Higher Fuel and Oil Costs Push Indonesia's June Inflation to 0.44%

Higher Fuel and Oil Costs Push Indonesia's June Inflation to 0.44%

Jakarta, ThedailyID — Indonesia’s monthly inflation accelerated to 0.44% in June, driven mainly by higher fuel, engine oil, and transportation costs, according to the country’s statistics agency.

Deputy for Distribution and Services Statistics at Statistics Indonesia (BPS), Ateng Hartono, said the transportation sector recorded the highest inflation among all expenditure groups.

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The transportation group posted 2.29% monthly inflation, contributing 0.28 percentage points to the overall inflation rate. According to BPS, higher gasoline prices, airfares, and engine oil costs were the main drivers.

“The transportation group was mainly affected by increases in gasoline prices, airfares, and engine oil,” Ateng said during a press conference on Wednesday.

The rise followed PT Pertamina’s decision to increase the price of its non-subsidized Pertamax gasoline on June 10. The fuel price climbed from Rp12,300 to Rp16,250 per liter, marking one of the largest adjustments this year.

Ateng said higher gasoline prices reflected adjustments to several non-subsidized fuel products during June.

Consumers also reported noticeable increases in engine oil prices. Marcel, a worker in Jakarta, said routine motorcycle maintenance had become significantly more expensive.

“I used to pay Rp50,000 for an oil change, including labor. Now the oil alone costs Rp50,000, and the total reaches Rp70,000,” he said.

Meanwhile, BPS attributed rising airfares to stronger travel demand during the school holiday season, when passenger traffic typically increases.

Beyond transportation, inflation also came from the food, beverage, and tobacco category. BPS said higher prices for shallots, garlic, and rice contributed to the overall increase in consumer prices.

Indonesia’s annual inflation reached 3.34% in June, while transportation emerged as the largest contributor to price growth during the month.

Tags: BPSBusinessEconomyfuel pricesIndonesiainflationPertaminaThedailyIDTransportation
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