The reciprocal tariff policy imposed by the United States poses a real risk to employment in Indonesia, especially in export-oriented labor-intensive sectors such as textiles and footwear. These two sectors not only contribute a significant portion of manufacturing exports, but also absorb a large number of workers, especially young, low-educated, and casual workers, who are...Read more

Women's participation in the labor market is no longer a side issue, but rather the core of inclusive economic development. Although women's participation has increased slowly over the past decade, the gender gap in Indonesia's labor market remains quite high, with women's participation far below men's on average. The 2023 Sakernas data revealed that Indonesian women face various structural challenges such as limited...Read more

Indonesia experienced deflation of 0,09% (yoy) in February 2025, below Bank Indonesia's target range of 1,5%-3,5%, mainly due to electricity tariff adjustments. Core inflation remained stable, indicating that the decline was not driven by weakening demand. Inflationary pressures are expected to increase in the coming months as demand increases during the fasting month and subsidies end...Read more

Year-on-year (YoY) inflation in February 2025 was reported at -0,09% or lower compared to annual inflation in February 2024 which reached 2,75%. Furthermore, this month's inflation rate was also lower than the previous month, January 2025 which was 0,76%. The decrease in YoY inflation in February 2025 compared to January 2025 was driven by a decrease in prices in...Read more

Indonesia enters 2025 with a weakening economy. Declining purchasing power, a shrinking middle class, and a prolonged decline in sectoral productivity provide clear signals of significant structural problems, as reflected in economic growth figures throughout 2024. Q2024 2024 is the only quarter in XNUMX that does not have a seasonal factor...Read more

Poverty and inequality are two major issues in economic and social development in Indonesia. The latest data from the Central Statistics Agency (BPS) shows a gradual decline in poverty, but inequality remains a significant challenge. The official BPS report released in January 2025 describes various developments in poverty rates and economic inequality that have occurred throughout...Read more

The rupiah remained under pressure throughout last month, especially due to the revised expectation that the Fed will cut interest rates only twice in 2025, compared to the previous projection of four rate cuts. The adjustment reflects still-high inflation in the US and the potential inflationary impact of policies that may be taken by the former...Read more