March 11, 2026 | 09:30 pm
TEMPO.CO, Jakarta - Indonesian Minister of Finance Purbaya Yudhi Sadewa stated that inflation remains relatively controlled before the Eid period. The inflation rate in February 2026 is considered more temporary due to the low base rate in 2025.
"The inflation in February is estimated to reach 2.59 percent if we do not consider the discounted electricity tariffs that were in effect at the beginning of 2025," said Purbaya in the KiTa State Budget press conference at his office in Central Jakarta on Wednesday, March 11, 2026.
He said that based on its components, core inflation, which contributes about 65 percent to the Consumer Price Index (CPI), reached 2.63 percent. Volatile food inflation, which contributes 15.8 percent, reached 4.64 percent. Administered price inflation, which has a 19.2 percent contribution, reached 12.66 percent.
According to Purbaya, core inflation increased slightly due to rising gold prices and increased demand during the National Religious Holidays period, which includes Ramadan. Although inflation in the volatile food group increased due to weather factors and increased demand during Ramadan, it remains below 5 percent.
Administered price inflation increased mainly due to the low base effect of discounted electricity tariffs at the beginning of 2025. He estimated that inflation would moderate in March 2026. The data presented also shows a connection between global oil prices and the inflation rate.
During past periods of high oil prices, the government implemented three strategies to maintain fiscal sustainability, protect the public's purchasing power, and control inflation.
These strategies include the fiscal shock absorber function through energy subsidies and compensation. Providing social protection such as direct cash assistance (BLT), additional social assistance, and transportation subsidies. And, measured adjustments to domestic prices to maintain fiscal sustainability.
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