Indonesia's Finance Ministry Closely Watching Inflation Amid Weather Concerns

Economic Context and Price Trends

The Indonesian Finance Ministry is maintaining vigilant monitoring of inflationary pressures as the country faces extreme weather conditions that could potentially disrupt food production and distribution. According to Director General of Economic and Fiscal Strategy, Febrio Kacaribu, inflation in November 2025 showed a deceleration, reaching 2.72% year-on-year, down from 2.86% in the previous month. This slowdown was primarily attributed to the easing of volatile food prices, which decreased to 5.48% from 6.59% in October.

Government Response and Price Stabilization

Despite the positive trend in inflation rates, the government remains cautious about potential future price shocks, particularly with the ongoing rainy season that could affect agricultural output. Febrio emphasized that the government continues to implement consistent price stabilization measures, which have begun to show positive results in certain commodities. Prices of essential goods such as rice, red chili, and chicken meat have started to decline, providing some relief to consumers.

Forward-Looking Perspective

The Finance Ministry is proactively anticipating potential price volatility in the coming period. The combination of weather-related risks and global economic factors necessitates continued government vigilance. While current inflation trends are favorable, the ministry is prepared to implement further measures if needed to maintain price stability and protect consumer purchasing power.