Antara News·Indonesia·Monday, October 26, 2026 at 01:16 PM UTC

Indonesia's September inflation stays within target: Minister

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Muhammad Harianto, Resinta Sulistiyandari

Home Affairs Minister Tito Karnavian said Indonesia's annual inflation rate of 3.28 percent in September 2026 remained within the government’s target range, balancing producer and consumer interests while supporting economic stability.

"The year-on-year (yoy) inflation in September stood at 3.28 percent. This remains within our target range of 2.5 percent, plus or minus 1.5 percent," Tito said in a meeting on Monday.

The government has set an inflation target of 2.5 percent with a tolerance range of up to 3.5 percent to maintain an optimal balance between the interests of producers and consumers.

Tito said the excessively low inflation could reduce the incomes of farmers, fishermen, and business operators. He stressed the need for a national price policy that balances prices while safeguarding producers’ welfare.

Conversely, excessive inflation could reduce people's purchasing power, particularly among low-income households.

The government, therefore, seeks to keep inflation within the national target range.

The government also recorded a 0.30 percent increase in monthly inflation from August to September, with the main contributor coming from the food and beverage category due to the increase in national chili prices.

According to the minister, drought conditions had reduced chili production in several key growing regions, temporarily leaving supplies insufficient to meet market demand.

The government is encouraging the expansion of chili planting programs in both rural and urban areas to strengthen supply and maintain the sustainable price stability of national horticultural commodities.

Tito added that food price development will be monitored through coordination across ministries and local administrations to ensure effective inflation control meets the established targets.

He expressed optimism that consistent inflation control will maintain national economic stability while providing certainty for businesses, farmers, and the public in facing future price dynamics.

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