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

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 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

October 2024 marked a decline in headline inflation to 1,71% (yoy) from 1,84% (yoy) in the previous month. Headline inflation in October 2024 reached its lowest point since November 2021 and was relatively within Bank Indonesia's inflation target of 1,5% to 3,5%. The decline in inflation was driven by the regulated price group and the volatile price group. Core inflation slightly...Read more

SUMMARY GDP is estimated to grow by 4,96% (range of estimates 4,94%-4,98%) in Q2024 5,00, 5,05%-2024% for FY5,0, and 5,1%-2025% for FY5,11. Indonesia's economic growth slowed from 2024% (yoy) in Q5,05 2024 to 11% (yoy) in Q17 XNUMX, driven by a drastic slowdown in government spending despite seasonal factors. XNUMX out of XNUMX economic sectors experienced a slowdown in growth...Read more