The impact of inflation on business, government policy, and purchasing power.
BPS announced that inflation in November 2025 slowed down from 2.86% YoY in October to 2.72% YoY. Adequate food stocks and deflation in rice prices caused inflation to slow down at the end of 2025.
The national inflation rate as of October 2025 was recorded at 2.86%. Although still within the government's target corridor, the inflation trend is starting to show an increase. Regions outside Java recorded fluctuating inflation rates.
The Central Statistics Agency (BPS) reported the general inflation rate in October 2025 at 2.86% year-on-year (YoY). With less than two months until the end of 2025, Indonesian inflation is still below the upper limit of the government and Bank Indonesia (BI) target of 3.5%.
President Prabowo Subianto highlighted that one of the achievements of his one-year administration was being able to control inflation. On several occasions the president even claimed that many other countries wanted to learn how to control inflation from Indonesia.
The Central Statistics Agency (BPS) reported an inflation rate of 2.37% year-on-year in July 2025. This inflation rate is still within the target range for inflation control this year set by the government and Bank Indonesia (BI), which is 1.5%-3.5%.
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