Bank Indonesia (BI) believes that in the future, inflation will remain under control within the target range of 2.5 percent plus minus 1 percent or within the range of 1.5 percent to 3.5 percent in 2026 and 2027.
As is known, the inflation of the Consumer Price Index (CPI) in 2025 is maintained within the target target.
The Executive Director of the BI Communication Department, Ramdan Denny Prakoso, in his statement in Jakarta, quoted by Antara, Tuesday, January 6, said that inflation that remained within its target range was the result of consistency in monetary policy.
In addition, inflation is maintained thanks to the close synergy in controlling inflation between BI and the central and regional governments in the Central and Regional Inflation Control Team (TPIP and TPID) and the strengthening of the implementation of the National Food Security Program.
Based on data from the Central Statistics Agency (BPS) released on Monday (5/1), the December 2025 CPI inflation was recorded at 0.64 percent (month to month/mtm), so that on an annual basis the 2025 CPI inflation became 2.92 percent (year on year/yoy).
Monthly CPI inflation in December 2025 increased compared to November 2025 inflation by 0.17 percent (mtm).
The increase in inflation was mainly contributed by the volatile food and administered prices groups, while core inflation was relatively stable.
Core group inflation was recorded at 0.20 percent (mtm), relatively stable compared to the previous month's realization of 0.17 percent (mtm), with inflation mainly contributed by gold jewelry commodities and cooking oil.
Meanwhile, the volatile food group inflation increased to 2.74 percent (mtm), from the previous month's inflation of 0.02 percent (mtm).
This is mainly contributed by the commodities of cayenne pepper, broiler chicken meat, and onions which are influenced by the impact of weather disturbances, high prices of livestock production inputs, and increased demand on the National Religious Holiday of Christmas and New Year (HBKN Nataru).
The administered prices inflation was recorded at 0.37 percent (mtm), increasing from the previous month's inflation of 0.24 percent (mtm).
Monthly administered prices inflation was mainly contributed by gasoline commodities, air transportation tariffs, and intercity transportation tariffs in line with the increase in non-subsidized fuel prices and increased community mobility during the Nataru HBKN period.
On an annual basis, the 2025 CPI inflation remained within the target range supported by the continued maintenance of various components of inflation.
Core inflation remained low at 2.38 percent (yoy), in line with the consistency of interest rate policies in anchoring inflation expectations within the target, the still large economic capacity, controlled imported inflation in line with the BI rupiah exchange rate stabilization policy, and the positive impact of digitalization.
Volatile food inflation is relatively under control at 6.21 percent (yoy), supported by efforts to continue to maintain the availability of food supplies and closely supported by the synergy of inflation control between BI and TPIP-TPID and the strengthening of the implementation of the National Food Security Program in various regions.
Meanwhile, the inflation of the administered prices group was recorded at 1.93 percent (yoy), in line with the limited price adjustment policy regulated by the government.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
