Indonesia's April 2026 inflation controlled at 2.42 percent, government and BPS say

Indonesia's April 2026 inflation stood at 0.13 percent monthly and 2.42 percent annually. Finance Minister Purbaya Yudhi Sadewa said maintaining fuel subsidies successfully curbed energy sector inflation spikes. BPS explained non-subsidiized fuel price hikes had minimal impact.

Indonesia's Central Statistics Agency (BPS) reported April 2026 inflation at 0.13 percent month-to-month (mtm), 2.42 percent year-on-year (yoy), and 1.06 percent year-to-date (ytd). The Consumer Price Index (IHK) rose from 108.47 in April 2025 to 111.09 in April 2026.

Finance Minister Purbaya Yudhi Sadewa said inflationary pressures are easing due to government policy normalization. He stressed that maintaining fuel (BBM) subsidies amid geopolitical tensions and high global oil prices successfully controlled inflation, especially in the energy sector. "But if we let oil prices float, with BBM following world oil prices, inflation would spike high and erode purchasing power," Purbaya said at the Finance Ministry in Jakarta on Monday, May 4, 2026.

BPS Deputy for Distribution and Services Statistics Ateng Hartono explained mid-April non-subsidized BBM price hikes had insignificant impact due to their small weight. Gasoline contributed just 0.02 percent to overall monthly inflation. "Because gasoline's weight is small, its influence on inflation is relatively not that big," Ateng said in a teleconference press event the same day.

Ateng noted avtur price increases affected airfares but with limited overall impact. Passenger transport services inflation hit 15.24 percent mtm due to tariff normalization after deflation from government stimulus in Q1 2026.

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Illustration depicting surging oil prices over 115 USD due to Middle East conflict, with economic impacts on Indonesia including rupiah weakening.
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Global crude oil prices have surpassed 115 USD per barrel, triggered by escalation in the Iran-AS-Israel war and Houthi threats. Economists warn of fiscal risks for Indonesia, including rupiah weakening to Rp17,002 per USD and potential APBN deficit. Pertamina denies rumors of non-subsidy fuel price hikes starting April 1, 2026.

CORE Indonesia projects March 2026 annual inflation at 3.5-3.6 percent, down from February's 4.76 percent. The forecast reflects a low-base effect from electricity tariffs, though Lebaran and non-subsidized fuel prices may push monthly inflation higher. Official BPS data is due on April 1, 2026.

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House Speaker Puan Maharani has urged the government to explain the reasons behind Pertamina's non-subsidi fuel price increase effective April 18, 2026. She seeks clarity on how long the hike will last and mitigation steps for the Iran-US conflict impact. Energy Minister Bahlil Lahadalia stated that non-subsidi prices follow global markets.

Indonesia's economy grew 5.61 percent in Q1 2026, the highest in five years and among G20 nations releasing data, according to BPS. Kadin, officials, and the Finance Minister praised the achievement amid global challenges. Growth was driven by household consumption, government spending, and investment.

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Energy and Mineral Resources Minister Bahlil Lahadalia affirmed that the government will not raise prices of subsidized fuel oil (BBM) and LPG amid the Middle East geopolitical crisis. The statement came after opening the XI Regional Conference of Golkar Party in North Sulawesi in Manado on April 11, 2026. National stocks of BBM and LPG are secure for days ahead.

South Korea's consumer prices rose 3.1 percent in May from a year earlier, the fastest pace in 26 months, driven by surging fuel prices amid the Middle East war.

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