Purbaya Claims March Inflation at Only 2.5 Percent Excluding Electricity Discount

JAKARTA, KOMPAS.com - Finance Minister Purbaya Yudhi Sadewa explained that the inflation rise in March 2026, reaching 3.48 percent year-on-year, was influenced by base effects, particularly the electricity discount policy from the same period last year.

According to Purbaya, this spike in the inflation figure does not fully reflect the real price pressures currently faced by society.

“Inflation in March reached 3.48 percent year-on-year. This includes the impact of last year’s electricity discount, which was not accounted for by BPS,” he stated during a working meeting with Commission XI at the House of Representatives on Monday (6/4/2026).

“If we exclude the impact of last year’s electricity subsidy, inflation for March is only 2.51 percent, so it remains relatively controlled,” he added.

Purbaya explained that the 3.48 percent inflation figure is often misinterpreted as a sign of excessive economic pressure.

In reality, the increase is more due to differences in the electricity price calculation base compared to the previous year.

This situation, according to Purbaya, shows that fundamentally, Indonesia’s inflation remains within a safe and controlled range.

The government also assesses that price stability is maintained not least due to coordination between fiscal and monetary policies in preserving people’s purchasing power amid global dynamics.

With inflation remaining controlled, space to drive economic growth is seen as still open without causing significant price pressures.

Several indicators show positive economic performance. Industrial activity remains in an expansion phase for eight consecutive months, although the Purchasing Managers’ Index (PMI) dipped to 51.1 in March due to concerns over the impact of global conflicts.