Key insights and market outlook
Bank Indonesia (BI) successfully maintained inflation within the target range of 2.5±1% throughout 2025 through consistent monetary policy and strong inflation control synergy with the government. As of December 2025, inflation reached 2.92% year-on-year, with monthly inflation at 0.64% in December. BI remains optimistic about continued inflation control in 2026 through maintained policy consistency and strengthened national food security programs.
Bank Indonesia has successfully maintained inflation within the target range of 2.5±1% throughout 2025. The achievement was made possible through consistent monetary policy and strong collaboration between Bank Indonesia and both central and regional governments. According to data from the Central Statistics Agency (BPS), December 2025 saw monthly inflation of 0.64%, bringing the year-on-year inflation to 2.92% as of December 2025.
The success in maintaining controlled inflation was attributed to several key factors: BI's consistent monetary policy stance, effective collaboration through the Central and Regional Inflation Control Teams (TPIP and TPID), and the strengthened implementation of the National Food Security Program. Ramdan Denny Prakoso, Executive Director of BI's Communication Department, emphasized that these coordinated efforts were crucial in achieving the inflation target.
With the successful inflation control in 2025, Bank Indonesia remains optimistic about maintaining this stability through 2026. The central bank plans to continue its current monetary policy stance while further strengthening national food security initiatives to support sustained economic stability.
Inflation Target Achievement
Monetary Policy Success
Economic Stability Maintenance