In line with expectations, Statistics Indonesia (BPS) announced that Indonesia's annual inflation rate only rose modestly in March 2016. The nation's March inflation figure climbed to 4.45 percent year-on-year (y/y) in March from 4.42 percent (y/y) in the preceding month. On a monthly basis, Indonesian inflation accelerated 0.19 percent (m/m) in March. The country's core inflation, which excludes administered and volatile food prices, stood at 3.50 percent, slighly below the average 3.60 percent estimate of analysts.

Read more ›

In line with expectation, Indonesia's consumer price index fell in February 2016. Based on the latest data from Statistics Indonesia (BPS), released this morning, Southeast Asia's largest economy recorded deflation of 0.09 percent month-on-month (m/m) in the second month of the year on the back of lower food prices and lower electricity tariffs. However, on a year-on-year basis, Indonesia's inflation rate rose from 4.14 percent (y/y) in January to 4.42 percent (y/y) in February.

Read more ›

The central bank of Indonesia (Bank Indonesia) reported that Indonesian consumers are becoming increasingly optimistic about economic prospects and their personal financial situation this year, evidenced by a 5.1 point rise in Bank Indonesia's Consumer Confidence Index to 112.6 points in January 2016. This index is based on a survey, involving 4,600 households in 18 cities across the archipelago (a reading above 100 indicates optimism, while a reading below 100 indicates pessimism).

Read more ›

Indonesia's inflation rate rose 0.51 percent on a monthly basis in January 2016 according to the latest data from Statistics Indonesia (BPS). Suryamin, Head of BPS, said food products accounted for most of the inflationary pressures in the first month of the year. Inflation tends to have a peak in the months December and January due to Christmas and New Year celebrations when consumer demand for various products, including food items, increases (the other peak comes in the June-August period due to Islamic celebrations).

Read more ›

Indonesia experienced deflation, with consumer prices falling by 0.05 percent (month-on-month), in September 2015 on the back of lower food and transportation prices. Examples of lower food prices include chicken meat, eggs, chili peppers, onions and cooking oil. Regarding lower transportation costs it was particularly lower air transport tariffs that contributed to deflation. On an annual basis, Indonesian inflation eased to 6.83 percent in September, down from 7.18 (y/y) in the preceding month, and below analysts' estimates at 7.0 (y/y).

Read more ›

Indonesia’s inflation accelerated to 7.26 percent year-on-year (y/y) in June 2015 on higher food prices triggered by the start of the Ramadan month (the Islamic fasting month). The seasonal Ramadan and subsequent Idul Fitri celebrations always cause inflationary pressure in Indonesia as consumers increase spending. Despite Indonesian purchasing power having declined in recent months, reflected by slowing car and motorcycle sales, cheaper consumer goods such as food, clothes, shoes and bags are popular.

Read more ›

Indonesian inflation is expected to have eased further in February 2015 on lower food prices. One notable exception, however, is rice. Rice prices have soared approximately 30 percent year-on-year (y/y) up to IDR 12,000 per kilogram in February. Higher rice prices have been caused by distribution obstacles for Raskin (‘rice for the poor’) operations in combination with this year’s late harvest season (between March and June). Fluctuation in prices of rice, the staple food of 250 million Indonesians, has a significant impact on inflation in Indonesia.

Read more ›

Indonesia’s Central Statistics Agency (BPS) announced on Monday (01/12) that the country’s inflation figure accelerated to 6.23 percent year-on-year (y/y) in November 2014 (from 6.23 percent y/y in the previous month) due to the impact of higher subsidized fuel prices implemented by the Indonesian government. On 18 November, prices for subsidized fuels (low-octane gasoline and diesel) were raised by more than 30 percent in a bid to reallocate public spending from fuel consumption to productive long-term development.

Read more ›

Indonesia’s inflation figure this October may reach the highest level in five years primarily due to volatile food prices triggered by drought in several parts of Indonesia. Chili, in particular, has shown a widening gap between domestic demand and production thus adding inflationary pressures in Southeast Asia’s largest economy. The country’s central bank expects that the inflation figure may reach 0.4 percent (month-on-month, m/m), considerably higher than the historic average in October.

Read more ›

Inflation in October 2013 was recorded at 0.09%. This low inflation rate was mainly supported by easing food and clothes prices. The foodstuffs component in the basket recorded deflation of 0.34 percent, while clothes posted deflation of 0.56 percent. These details were presented by Suryamin, Head of Statistics Indonesia (BPS) on Friday (01/11). The 0.09 percent October inflation rate is low compared to past results in the same month with the notable exception of October 2011 when 0.12 percent of deflation was recorded.

Read more ›

Indonesia's central bank, Bank Indonesia, expects deflation of about 0.9 percent in September 2013. Statistics Indonesia, on the other hand, believes there will be limited inflation this month. Both institutions agree, however, on a forecast of at least 9 percent of inflation over full-year 2013. The bank's September forecast is based on a survey that was conducted in the second week of September. This survey showed that food commodities and government administered prices eased.

Read more ›

Last week, Indonesia's benchmark stock index (IHSG) remained under pressure and was corrected 122,735 points, or 2.9 percent. At the start of the week, a number of important data were released. Inflation in August 2013 was 1.12 percent (month-to-month), 7.94 percent (calender year 2013), and 8.79 percent (year on year). Major contributors to Indonesia's inflation rate were food products (0.45 percent), followed by housing, water, electricity and gas (0.16 percent), and transportation, communication and financial services (0.16 percent).

Read more ›