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 […]
A research project titled “Towards a Just Energy Transition in Indonesia” was carried out in close partnership with the Technical University of Denmark, University of Indonesia, Prasetiya Mulya University, the Dala Institute, and the University of Cape Town. Running from 2022 to 2024, it was funded by the Ministry of Foreign Affairs of Denmark and administered […]
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 […]
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 […]
Rising food prices were offset by lower personal care and transportation costs, resulting in Indonesia's headline inflation falling to 2,31% (yoy) in August 2025, remaining within Bank Indonesia's target range of 1,5-3,5%. Core inflation slowed to 2,17% (yoy), indicating weak domestic demand. Externally, portfolio capital flows strengthened the Rupiah in early September, but sentiment reversed after […]
In August 2025, Indonesia recorded deflation of 0,08% (month-to-month), bringing annual inflation down to 2,31% (year-on-year) from 2,37% (year-on-year) in July 2025. This decline was driven by more controlled food price increases, although the level remained higher than in August of last year. The monthly deflation pattern in August was consistent with the seasonal trend that has persisted for the past four […]