Business · Economy · 1 hr ago
Indonesia’s Deputy Minister Says Inflation Is Driven Mainly by Supply Problems
Indonesia’s Deputy Minister for Economic Affairs, Dradjad Hari Wibowo, says inflation is being driven mainly by supply problems and rising costs, not unusually strong demand.
He said people’s purchasing power remains strong, but supplies of some goods are not keeping up.
He cited chili shortages and said imported electronics can also add to inflation.
In September 2026, Indonesia’s statistics agency recorded inflation of 3.28% compared with a year earlier and 0.30% compared with the previous month.
Food, drinks and tobacco were the biggest contributors to monthly inflation, with items including chilies, chicken and rice.
Dradjad said the government should focus on strengthening supply chains and ensuring goods move smoothly.
His ministry and the statistics agency plan to coordinate with other government bodies to share data and improve how information is recorded.
Indonesia’s Deputy Coordinating Minister for Economic Affairs Dradjad Hari Wibowo said inflation is driven mainly by supply problems rather than high demand.
He said purchasing power remains strong, but the supply of some goods is insufficient.
Dradjad said inflation control should focus on strengthening supply chains and ensuring goods move smoothly.
Indonesia recorded annual inflation of 3.28% in September 2026 and monthly inflation of 0.30%.
Food, beverages and tobacco were the largest contributors to monthly inflation, with inflation of 0.88% in that group.
- Who
- Deputy Coordinating Minister for Economic Affairs Dradjad Hari Wibowo.
- What
- He said Indonesia’s inflation is mainly cost-driven by supply problems, not high demand.
- When
- He made the remarks on October 12, 2026.
- Where
- At a news conference at the Central Statistics Agency office in Central Jakarta.
- Why
- He said purchasing power is strong but the supply of some goods is insufficient.
This story does not have two clearly opposing sides.
BPS officials presented September inflation figures at a news conference.
Indonesia recorded annual inflation of 3.28% and monthly inflation of 0.30%.
Dradjad said inflation was driven mainly by supply problems at a news conference in Jakarta.
CNN Indonesia published its report on Dradjad’s remarks.
- Annual inflation, September 2026
- 3.28%
- Monthly inflation, September 2026
- 0.30%
- Food, beverages and tobacco inflation
- 0.88%
- Provinces with monthly inflation
- 36
- Highest regional inflation
- North Sulawesi, 3.53%
What people are saying
Inflation in Indonesia turns out to be more cost-push inflation. It is more inflation driven by cost factors, by supply factors.
Purchasing power is good, supply is not enough, so inflation automatically occurs.
The main key to controlling national inflation going forward must focus on strengthening supply chains and ensuring the smooth supply of goods.
Sources
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