The New Global Governance Alternative: Indonesia's Future Scenario
In April 2025, Indonesia's inflation rate surged to 1.95% year-on-year, marking the highest level since August 2024. This uptick was primarily driven by increased costs during the Eid festivities and the expiration of a temporary 50% electricity tariff rebate, which had previously suppressed housing expenses. Notably, core inflation reached a 22-month peak at 2.50%, indicating underlying price pressures likely influenced by higher import costs due to a weakening Rupiah.
Despite these inflationary trends, consumer demand remains subdued, prompting a downward revision of the 2025 GDP growth forecast to 4.8%. The central bank is expected to maintain a cautious monetary stance, focusing on exchange rate stability amidst ongoing global market volatility—making this report a timely pulse-check for those watching how Indonesia balances inflation control with economic resilience.