RI's October inflation stays within target range at 3.23 percent: Govt

Jakarta (ANTARA) - Finance Minister Suahasil Nazara stated that the national inflation rate of 3.23 percent remains within the government's target range, while the manufacturing index rising to 54 in October indicates that businesses anticipate an increase in demand.

Suahasil shared these latest economic developments after briefing President Prabowo Subianto at the State Palace in Jakarta on Tuesday regarding the stability of the national economy.

He explained that the government’s inflation target is 2.5 percent, plus or minus one percent—establishing a permissible range of 1.5 percent to 3.5 percent.

Consequently, the latest inflation figure remains within the range projected when formulating economic estimates for Indonesia.

"This is what we call 'on track'," Suahasil stated, confirming that price pressures remain managed as anticipated during budget formulation.

Alongside stable inflation, Indonesia’s industrial sector has shown robust expansion. The Purchasing Managers' Index (PMI) for manufacturing climbed to 54 in October, up from 52 in September.

Suahasil explained that an index figure above 50 indicates that the manufacturing sector is increasing its raw material inventories because businesses anticipate a rise in demand, necessitating higher production.

"Our business owners foresee an uptick in demand, so they are beginning to prepare for increased production by purchasing more inputs," Suahasil stated, underscoring positive momentum across national industries heading toward the close of the year.

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Translator: Aditya Ramadhan, Fathur Rochman, Yashinta Difa
Editor: Azis Kurmala
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