Indonesia entered the final quarter of 2025 with persistently rising inflation, resurgent external pressures, and growing investor caution. Headline inflation rose in October as food prices remained high due to weather-related supply disruptions, and rising gold prices continued to drive up core components. At the same time, capital outflows increased despite […]
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 […]
ONE-YEAR EVALUATION OF THE CURRENT GOVERNMENT Most experts, 30 out of 64 respondents (47%), believe that the current economic conditions have worsened and are significantly worse than the previous quarter, while 24 experts believe that conditions have not changed. A small minority, 8 experts (12,5%), believe that the economic conditions have improved, while only 2 experts believe […]
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 […]