JAKARTA, Jan 6 — Bank Indonesia (BI) expected inflation to remain under control within the 2.5 per cent plus or minus one per cent target in 2026 and 2027, underpinned by the Consumer Price Index (CPI) inflation recorded in 2025.
It said that CPI inflation was maintained within the target range last year, supported by stable inflation across various components, based on data from Statistics Indonesia (BPS) released yesterday.
BPS data showed that CPI inflation in December 2025 was recorded at 0.64 per cent month-on-month (m-o-m), bringing annual CPI inflation for 2025 to 2.92 per cent year-on-year (y-o-y).
“Inflation staying within its target range reflected consistent monetary policy and strong inflation-control synergy between BI and the central and regional governments through the Central and Regional Inflation Control Teams (TPIP and TPID), as well as strengthened implementation of the National Food Security Programme,” BI said in a statement released on its official website.
Core inflation was kept low at 2.38 per cent y-o-y, in line with a consistent interest rate policy that anchors inflation expectations within the target, ample economic capacity, controlled imported inflation, alongside BI’s rupiah exchange rate stabilisation policy, and the positive impact of digitalisation.
The central bank noted that volatile food inflation was relatively contained at 6.21 per cent y-o-y, supported by continued efforts to maintain food supply availability, strong coordination between BI and TPIP and TPID, and strengthened implementation of the National Food Security Programme across regions.
“Meanwhile, administered prices inflation stood at 1.93 per cent y-o-y, in line with limited government-regulated price adjustment policies,” it said.
