Indonesia's fuel price hike pressures consumer credit and sparks public backlash

Indonesia’s consumer‑credit market is feeling strain as the price of fuel rose sharply. The non‑performing loan (NPL) ratio of banks rose to 2.17% in April 2026, up from 2.14% in March, while credit‑growth for households slowed to 6.13% year‑on‑year. Banks such as BCA, Mandiri, BNI and BRI are tightening underwriting and limiting new lending for housing, vehicle and unsecured loans.

The pressure stems from a 30 % increase in the price of the non‑subsidised Pertamax fuel, which jumped from Rp 12,300 to Rp 16,250 per litre. An Indef analysis of more than 600 000 social‑media posts found 98 % of reactions to be negative, with public fears of rising costs, potential shortages of the subsidised Pertalite fuel and broader economic stress.

Economists warn that if inflation and fuel costs remain high, the NPL ratio could climb to between 2.3 % and 2.5 % by year‑end, further tightening credit conditions for Indonesia’s middle class.