BI Calculates Non-Subsidised Fuel Price Increase Contributes 0.04% to April Inflation

Bank Indonesia (BI) estimates that the impact of the non-subsidised fuel price increase remains limited. This adjustment will not disrupt the annual inflation target. Deputy Governor Aida S Budiman stated this during the presentation of the Board of Governors Meeting results on Wednesday (22/4/2026). According to Aida, the non-subsidised fuel price adjustment will appear in April 2026 inflation. However, BI’s calculations show its contribution to the inflation weight is not significant, at around 0.04%. “Looking at the weight of non-subsidised fuel in inflation, for April this month it can increase inflation but not by much, only around 0.04 percentage points,” said Aida. Thus, BI is confident that overall inflation for the year in 2026 and 2027 will still be within the target range. “If we calculate overall for 2026 and 2027, our inflation projections remain within the 2.5% ±1% inflation range,” said Aida. Deputy Governor Ricky Perdana Gozali added that domestic inflation up to March 2026 remains controlled at 3.48% year-on-year. This inflation rate is still within BI’s target range. “Alhamdulillah, for March 2026, our CPI inflation is recorded at 3.48% year-on-year. This is still within the range we have set,” he said. He also explained that fuel price increases will impact the prices of goods and services, both directly and through distribution channels and production costs. On the other hand, global factors such as rising energy commodity prices and supply chain disruptions will add further pressure on the prices of goods and services. Pressure also comes from the risk of Godzilla El Niño, which could trigger prolonged dry spells and disrupt food supplies. Therefore, he stated that BI has mobilised all representative offices in the regions to respond to such potential inflation. “BI through its 46 domestic representative offices is ready to respond to potential inflation pressures from global factors, particularly from rising energy or fuel prices,” Ricky emphasised.