3.28 Per Cent Inflation Has Not Yet Suppressed Purchasing Power
Deputy Finance Minister Juda Agung assessed that the September 2026 inflation rate of 3.28 per cent year-on-year (yoy) has not exerted excessive pressure on public purchasing power. This inflation rate remains within the government’s target of 2.5 per cent, plus or minus 1 per cent.
Because inflation remains within the target range, it has not significantly influenced the public’s decisions regarding shopping and consumption.
“This means it (the public) has not been too impacted in terms of purchasing power, nor has it heavily impacted people’s decision-making in spending,” said Juda during a Media Gathering themed ‘2027 State Budget: Growing Higher, Prospering Faster’ on Thursday (1/10/2026).
According to Juda, the current condition is still considered ideal. The public is deemed not to need excessive consideration of inflation when making economic decisions, whether for spending, consumption, or investment.
“Therefore, this condition still falls within an ideal inflation state,” he added.
Nevertheless, the government, alongside Bank Indonesia, will continue to maintain the inflation rate until the end of the year. Coordination is carried out through the Central Inflation Control Team (TPIP) and the Regional Inflation Control Team (TPID).
“That is why we have the Central Inflation Control Team (TPIP) and the Regional Inflation Control Team (TPID); they are for coordination purposes,” Juda explained.
He noted that Bank Indonesia also maintains regional representative offices that actively participate in inflation control efforts.
“This includes Bank Indonesia’s regional branches and representative offices, which are truly undertaking efforts to ensure inflation remains controlled,” he said.
Based on data from the Central Bureau of Statistics (BPS), inflation in September 2026 reached 3.28 per cent annually. This figure is higher than the August 2026 inflation rate of 3.19 per cent.
On a monthly basis, September inflation was recorded at 0.3 per cent. Meanwhile, year-to-date (ytd) inflation reached 2.17 per cent.
The largest annual price increase occurred in the personal care and other services group, which reached 7.77 per cent with a contribution of 0.53 per cent. This group’s inflation was primarily driven by gold and jewellery.
The transport group also experienced inflation of 4.84 per cent with a contribution of 0.58 per cent, while the food, beverage, and tobacco group experienced inflation of 4.37 per cent with a contribution of 1.28 per cent.
“Commodities with the largest inflation contribution in the food, beverage, and tobacco group include fresh fish, broiler chicken, bird’s eye chilli, rice, cooking oil, sweetened condensed milk, and beef,” said BPS Deputy for Distribution and Services Statistics, Ateng Hartono.