BI strengthens inflation coordination amid global uncertainty

Bank Indonesia (BI) is strengthening coordination with various parties, including the government, to control inflation amidst global uncertainty.

“We continue to coordinate between central and regional authorities to maintain inflation as global prices rise,” stated the Governor of Bank Indonesia, Perry Warjio, during a Working Meeting with the Indonesian House of Representatives (DPR RI) Budget Committee, monitored online in Jakarta on Tuesday.

Perry added that coordination in maintaining inflation is essential to ensure prices remain controlled, thereby ensuring public welfare and maintaining strong fiscal and monetary stability.

“So that inflation is kept in check, the people remain prosperous, and fiscal and monetary stability remains strong, God willing,” he said.

For information, Bank Indonesia views the Consumer Price Index (CPI) inflation for June 2026 as remaining within the target range, with a realisation of 3.34 per cent (yoy), thanks to close synergy in inflation control between the central bank, the central government, and regional authorities.

Furthermore, controlled inflation is also supported by the strengthened implementation of the National Food Security Programme and the consistency of the monetary policies pursued by BI.

“Moving forward, Bank Indonesia is confident that inflation will remain controlled within the target range of 2.5 per cent plus or minus 1 per cent (a range of 1.5-3.5 per cent) in 2026 and 2027,” said the Executive Director of the BI Communications Department, Ramdan Denny Prakoso.

Based on data from the Central Statistics Agency (BPS) released on Wednesday (1/7), the CPI in June 2026 recorded monthly inflation of 0.44 per cent (month-to-month/mtm), resulting in annual CPI inflation of 3.34 per cent (year-on-year/yoy).

Core inflation in June 2026 was recorded at 0.23 per cent (mtm), relatively stable compared to the previous month’s realisation of 0.22 per cent (mtm).

Developments in core inflation were primarily influenced by high global commodity prices amidst maintained inflation expectations.

Annually, core inflation in June 2026 was recorded at 2.76 per cent (yoy), higher than the previous month’s inflation realisation of 2.59 per cent (yoy).

The volatile food group in June 2026 experienced inflation of 0.14 per cent (mtm), lower than the previous month’s realisation of 0.22 per cent (mtm).

Inflation in the volatile food group was mainly contributed by shallots, garlic, and rice, following a decrease in production in central regions, rising transportation costs, and the end of the peak harvest season.

Annually, the volatile food group experienced inflation of 5.58 per cent (yoy), lower than the previous month’s realisation of 6.24 per cent (yoy).