Prabowo Sets Inflation Target for 2027 at 1.5 to 3.5 Per Cent

In Jakarta, Kompas.com—President Prabowo Subianto aims to keep national inflation within the target range of 1.5 per cent to 3.5 per cent in 2027. The target is part of the government’s effort to maintain national economic stability amid global economic uncertainty. Prabowo stated the target in a speech on the Macro Economic Framework and the Principles of Fiscal Policy (KEM PPKF) 2027 at the opening of the DPR RI plenary session on Wednesday, 20 May 2026. The government will keep inflation in next year within that target range. ‘Inflation will be kept within the range of 1.5 to 3.5 per cent,’ Prabowo said. Data from Badan Pusat Statistik (BPS) show April 2026 inflation at 0.13 per cent month-on-month, as the Consumer Price Index rose from 110.95 in March 2026 to 111.09 in April 2026. Year-to-date inflation stood at 1.06 per cent. The transport category contributed the largest share to inflation in April 2026, at 0.12 percentage points with inflation at 0.99 per cent. The food, beverages and tobacco group deflated by 0.20 per cent, contributing -0.06 percentage points. Other commodities contributing to inflation included palm oil for cooking oil at 0.05 percentage points, tomatoes at 0.03, and rice with accompaniments at 0.02 per cent for both. BPS also noted some commodities as inflation dampeners, including chicken meat, gold jewellery, Bird’s Eye chilies, and chicken eggs. Core inflation registered 0.23 per cent, contributing 0.15 percentage points. The main contributors to core inflation included cooking oil, rice with accompaniments, mobile phones, fried chicken, laptops/notebooks, and sugar. Government-regulated price components rose by 0.69 per cent, contributing 0.13 percentage points, while the volatile component recorded deflation of 0.88 per cent, with -0.15 percentage points. The deflation was driven by lower prices of chicken meat, Bird’s Eye chilies, chicken eggs, and red chilies. Across the 30 provinces, inflation was observed in April 2026, with 8 provinces experiencing deflation. The highest inflation was in West Papua at 2.00 per cent, while Maluku recorded the deepest deflation at -0.17 per cent.