Price movements in October 2025 were primarily driven by shifts in fresh food supplies and a slight increase in government-managed price components, while pressure from several dominant commodities in recent months has eased, keeping the overall rate under control. This combination pushed annual headline inflation up to 2,86% (YoY) from 2,65% (YoY) in September. Inflation remains […]
SUMMARY GDP is estimated to grow 4.88% (range of estimates 4.86%-4.90%) in Q3 2025, 4.95% (range of estimates 4.93%-4.97%) for FY2025, and 4.9%-5.0% for FY2026. The Indonesian economy recorded unexpected growth in Q2 2025, with GDP growing 5,12% (yoy), a significant acceleration from 4,87% in the previous quarter and exceeding most estimates. The manufacturing sector also […]
This edition of the Labor Brief highlights the paradox of Indonesia's labor market: despite declining open unemployment rates since the pandemic, the quality of available jobs has not fully improved. Despite increasing employment, the number of underemployed workers has actually increased, indicating that many are working below their capacity with limited hours and income. This situation is more prevalent […]
September's headline inflation rose to 2,65% (yoy) from 2,31% (yoy) in the previous month. The surge was primarily driven by volatile price components, as weather conditions and pest infestations in production centers across Sumatra hampered the supply of red chilies and increased broiler chicken production costs. Furthermore, rising gold prices also contributed to the overall […]
Author: Mohamad Ikhsan Executive Summary This paper examines the political economy of reform in Indonesia, with particular attention to the contrast between the New Order period and the post-Soeharto democratic era. While reforms under Soeharto—such as the Presidential Instruction (Inpres) programs—succeeded in delivering rapid poverty reduction and infrastructure expansion, post-1998 reforms have often faltered despite […]
Closing the third quarter of 2025, annual inflation in September rose to 2,65% (YoY), the highest since the beginning of the year. On a monthly basis, the CPI recorded inflation of 0,21% (mtm), reversing from the previous deflation of 0,08% (mtm) in August. In recent years, September has tended to experience monthly deflation, except in 2023 when adjustments to non-subsidized fuel prices per […]
This month's Labor Brief examines the economic policy package announced by the government on September 15, which aims to maintain public purchasing power while strengthening social protection. One key focus is the provision of discounts on Work Accident Insurance (JKK) and Death Insurance (JKM) contributions for non-wage workers (BPU). This policy is viewed positively as an initial step to attract […]