The conflict in the Middle East is affecting people around the world in both small and big ways.
As we live in a global economy dependent on fuel, the conflict is impacting everything from food costs to travel costs and even travel experiences, no matter where we are in the world.
There has been an uproar across Indonesia over the last month amid an economic climate that has caused the Indonesian Rupiah to continue weakening against the US dollar.
While in the first instance this was good news for tourists, with a weakening rupiah meaning that vacation budgets could go further and buy more, over the last week the economic fluctuations have found a new sense of balance.
With fuel costs rising in Bali and around Indonesia, it was only a matter of time until these costs had to be passed on to consumers, including tourists. That time has come.
The beginning of June has seen a price hike for Pertamax and Pertamax Green fuel, which is being felt across the tourism sector. As of 10th June 2026, the price of Pertamax (RON 92) has increased from IDR 12,300 per liter to IDR 16,250 per liter, an increase of 32%.
Then, Pertamax Green (RON 95) has increased from IDR 12,900 to ID 17,000 per liter. These are huge price spikes that are impacting just about every household on the island, and businesses are starting to feel the pinch, too.
At the moment, Bali’s tourist arrivals figures, for both international and domestic tourists, are stable. Leaders are looking ahead to the potential decline in the number of arrivals from the Middle East as airspace closures and flight cancellations continue to influence travelers’ holiday plans.
Leaders in Bali are already planning marketing campaigns to encourage more holidaymakers from Australia, New Zealand, China, India, and other areas of Asia.
There were hopes that this would help keep the economic situation stable and sustainable for both tourists and tourist businesses in Bali and Indonesia’s top destinations, but the updates coming from tour operators in Bali this week suggest that may not be the case.
Local Bali tour operator Erna Saenah told reporters that the increase in fuel costs will directly impact the cost of tourist transportation, which is one of the most costly components of any travel package. Price caps on fuel have also ended this month, which is another reason why the prices have rocketed.
Saenah explained, “Since the restrictions on subsidies and the increasing difficulty in obtaining subsidized fuel, most tourist transportation vehicles have switched to Pertamax. So today’s increase is certainly very noticeable and quite heavy for us.”
Saenah added, “Even with the efficiency measures, tourists have already decreased. Furthermore, airfare increases have caused some groups to cancel trips. Now, the increase in Pertamax will automatically affect the selling price of tour packages.”
She added, “When it comes to guests, around 50 percent of the package cost is transportation. With this fuel increase, the selling price of transportation will definitely increase.”
She warned tourists to expect prices to be elevated, and not only for tours and transportation, but for food and services too.
Transportation costs will impact hotel and restaurant services, including the delivery of supplies. She shared, “Food suppliers to hotels will certainly be affected. If distribution costs increase, selling prices to hotels will increase, and ultimately hotel room rates will also increase.”
Saenah shared her concerns with reports, concerns that are echoed by many in the sector that we here at The Bali Sun have heard from in the last few weeks.
She noted, “We just finished participating in the tabletop and Bali and Beyond Travel Fair (BBTF). We’ve already released our prices and distributed them to agents outside of Bali for the next year.”
“With this sudden increase, we’re still unsure what steps to take, as clients aren’t necessarily willing to accept the price adjustment.”
Tourists traveling to Bali in the coming weeks and throughout 2026 can expect to find that they receive a higher than usual exchange for their vacation budget, but that the cost of everything will slowly start to increase too.
Here at The Bali Sun, we feel that Bali will remain a very affordable destination for holidaymakers and that even the most budget-conscious of travelers will still be able to afford their itineraries as planned.
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