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Jakarta, Indonesia – 2025/10/09 11:21:23
Indonesia’s Inflation Rate Remains Stable in September 2025
Table of Contents
Indonesia’s annual inflation rate remained relatively stable in September 2025, according to data released by Statistics Indonesia (BPS). The consumer price index (CPI) rose by 2.86% year-on-year, a slight increase from the 2.88% recorded in August 2025.This indicates continued economic stability and effective monetary policy management by Bank Indonesia (BI).
Key Drivers of Inflation
The primary contributors to the September inflation rate were increases in the prices of food, beverages, and tobacco. Specifically, the price of rice saw a moderate increase due to seasonal factors and logistical challenges. Though,core inflation,which excludes volatile food and energy prices,remained stable at 3.01%, suggesting underlying inflationary pressures are well-contained.Statistics Indonesia (BPS) provides detailed monthly CPI reports.
Food and Beverage Costs
The food, beverage, and tobacco group experienced a 3.5% increase in prices, driven largely by fluctuations in agricultural commodity prices. The government has implemented several measures to stabilize food prices, including subsidized fertilizer programs and improved distribution networks. The Ministry of Agriculture continues to monitor and address supply chain disruptions.
transportation Costs
Transportation costs also contributed to the overall inflation rate, with a 2.1% increase. this was primarily due to rising global fuel prices,although the Indonesian government maintains a fuel subsidy to mitigate the impact on consumers. The Ministry of Energy and Mineral Resources regularly reviews and adjusts fuel prices based on global market conditions.
Bank Indonesia’s Response
Bank Indonesia (BI) has maintained it’s benchmark interest rate at 6.0% to manage inflation and support economic growth. BI Governor Perry Warjiyo stated that the central bank remains committed to maintaining price stability and will continue to monitor economic developments closely. Bank indonesia’s official website provides updates on monetary policy decisions.
Economic Outlook
analysts predict that Indonesia’s inflation rate will remain within the target range of 2.5% to 3.5% for the remainder of 2025. The country’s strong economic fundamentals, coupled with prudent monetary policy, are expected to support sustainable growth. The Indonesian economy is projected to grow by 5.2% in 2025, driven by increased investment and domestic consumption. The Ministry of economic Affairs provides economic forecasts and analysis.
Key Takeaways:
- Indonesia’s annual inflation rate in September 2025 was 2.86%.
- food, beverages, and tobacco prices were the main drivers of inflation.
- Bank Indonesia has maintained its benchmark interest rate at 6.0%.
- The Indonesian economy is projected to grow by 5.2% in 2025.
Looking ahead, the Indonesian government and central bank will continue to prioritize price stability and sustainable economic growth. Ongoing efforts to improve infrastructure, enhance agricultural productivity, and attract foreign investment are expected to contribute to a positive economic outlook for Indonesia.