Year-on-year (YoY) inflation in March 2025 was reported at 1,03% or lower compared to annual inflation in March 2024 which reached 3,05%. Furthermore, this month's inflation value was also higher than the previous month, February 2025 which reached -0,09%. The decrease in YoY inflation in March 2025 compared to February 2025 was driven by a decrease in prices in...Read more

Summary ● The macroeconomic assumption of 5,2%1 in the preparation of the 2025 State Budget shows a less aggressive but realistic government target considering the current weakening economic conditions. ● The government through Presidential Instruction2 has implemented a budget efficiency policy of Rp306,69 trillion, consisting of Rp256,1 trillion from the ministry/institution budget and Rp50,59 trillion from Transfers to Regions. ● The efficiency policy will affect...Read more

Headline inflation in January 2025 was recorded at 0,76% (yoy), its lowest level since 2000 and below BI's target range. This was largely influenced by electricity tariff discounts of up to 50% for certain household groups. Last month, the Fed, in line with market expectations, kept its benchmark interest rate on hold and Bank Indonesia inadvertently...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

The opening of the year in January 2025 was greeted by an inflation rate of 0,76%. This figure is lower than January 2024 at 2,57%. The inflation that occurred in January 2025 on a year-on-year (YoY) basis was driven by price increases in several expenditure groups such as price increases in the personal care group and other types with a rate of 7,27%, food group,...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

We observed a declining inflation rate trend throughout 2024, returning to Bank Indonesia's inflation target. Inflation reached its highest point in March 2024 at 3.05% and steadily decreasing, hitting 1.57% in December 2024. This is the lowest inflation rate in twenty decades, excluding the pandemic period of 2020-2021 and the post-pandemic years of 2022-2023 . The...Read more