February 2025 Deflation Driven By Electricity Tariff Discounts

JAKARTA - The Central Statistics Agency (BPS) experienced deflation in February 2025 which was recorded at 048 percent on a monthly basis or month to month (mom) driven by price deflations regulated by the government.

For information, the consumer price index (IHK) decreased from 105.99 in January 2025 to 105.48 in February 2025.

On an annual basis, Indonesia experienced deflation of 0.09 percent year on year (yoy), and deflation of 1.24 percent in calendar year calculations or year to date (ytd).

Head of BPS, Amalia Adininggar Widyasanti said that the core component experienced inflation of 0.25 percent with an inflationary contribution of 0.16 percent.

"The dominant commodities that contribute to the inflation of the core components are gold jewelry, powder coffee and cars," he said at the Press Conference, Monday, March 3.

Amalia said that the price component regulated by the Government experienced deflation of 2.65 percent by contributing 0.48 percent of deflation.

According to him, the dominant commodity that contributes to component deflation regulated by the government is electricity tariffs because there is a discount on electricity rates that will still take place in February 2025.

Amalia added that the volatile price component experienced deflation of 0.93 percent, this component contributed 0.16 percent to deflation.

The commodities that are dominant in contributing to the deflation of volatile components are broiler meat, shallots, red chilies, cayenne pepper, tomatoes, and broiler eggs.

Amalia said that the expenditure group that contributed to monthly deflation was housing, water, electricity, and household fuel with a deflation of 3.59 percent and contributed 0.52 percent to deflation.

According to him, the dominant commodity driving the group's deflation is the discount on electricity rates which contributes 0.67 percent to deflation.

Furthermore, commodities that also contributed to deflation due to the decline in prices for several foods volatile, such as broiler meat, whose prices fell so that they contributed to deflation by 0.06 percent, shallots, and red chilies also decreased prices throughout February, giving deflations of 0.05 percent and 0.04 percent, respectively.

In addition, there are other commodities that also contributed to inflation in February 2025, namely the increase in PAM drinking water tariffs which contributed to 0.13 percent of inflation and an increase in gold jewelery prices contributed 0.08 percent of inflation.

Then the increase or adjustment in gasoline prices contributed 0.3 percent to inflation.