Indonesia's September inflation stays within 2.5% target range, says minister

Tito Karnavian, Indonesia's Home Affairs Minister, confirmed that September 2026 inflation measured 3.28% year-on-year, staying within the official target of 2.5% with a 1.5% tolerance. He explained that keeping inflation in this band balances the needs of producers and consumers, noting that excessively low inflation can reduce incomes for farmers, fishermen and small enterprises, while high inflation harms the buying power of poorer households.

Monthly inflation rose 0.30% from August, mainly because food and beverage prices climbed, especially national chili, whose supply fell due to drought in key growing areas. The government plans to expand chili planting in both rural and urban zones and to coordinate price monitoring across ministries and local administrations. Karnavian expressed confidence that steady inflation control will sustain economic stability and give businesses and the public clearer expectations for future price movements.