Heaptalk, Jakarta — Indonesia’s inflation rate for March 2025 remains stable, with a year-on-year (YoY) inflation rate recorded at 1.03% compared to the last year. Meanwhile, the month-to-month inflation rate for March 2025 compared to February 2025 stood at 1.65%.
Minister of Home Affairs, Tito Karnavian shared this update during the 2025 Regional Inflation Control Coordination Meeting, which was held in a hybrid format at the Sasana Bhakti Praja (SBP) Building at the Ministry of Home Affairs headquarters in Jakarta. (04/21)
“This situation is still under control, as our national target for Indonesia is 2.5%, with a tolerance of plus or minus 1%. This means the range is between 1.5% to 3.5%. A 1.03% inflation rate is still acceptable and beneficial for consumers,” Karnavian remarked.
However, the Minister also cautioned about the potential impacts of this inflation figure on producers, particularly farmers and fishermen. He pointed out the issue of over-supply in rice and corn commodities, where the government, through the State Logistics Agency (Bulog), has set a policy to purchase dry unhusked rice at Rp6,500 per kilogram and corn at Rp5,500 per kilogram. “This is encouraging for farmers if implemented consistently,” he added.
Furthermore, Minister Karnavian noted that Indonesia’s annual inflation rate as of March 2025 ranks 34th out of 186 countries globally, placing it in the low inflation category. Among the G20 nations, Indonesia ranks 5th out of 24 countries. In the ASEAN region, Indonesia is ranked 5th out of 11 countries.
However, some regions within Indonesia are experiencing higher inflation rates, including Papua Pegunungan at 8.05%, Papua Tengah at 3.70%, and Maluku at 3.54%. The Minister emphasized that while these figures benefit producers, they may burden consumers, especially when producers are from outside these regions. In such cases, local communities do not benefit as much.
“An inflation rate of 3.5% is tolerable, but anything above that could be concerning. The people are beginning to feel the strain. In Papua Pegunungan, the new governor, Mr. John Tabo, was just inaugurated last Thursday. Minister Ribka (Deputy Minister of Home Affairs) and Mr. Akmal Malik (Director General of Regional Autonomy) may need to contact him, as he might not be aware of this situation. He’s new in office, and a joint meeting will be necessary,” Karnavian added.
