Indonesia: cost of living

What is Indonesia's core inflation rate?

Indonesia's core inflation was 2.84% in September 2026, down from 2.92% in August, according to Bank Indonesia's release of 1 October 2026 on BPS data. Headline inflation was 3.28%, within the 2.5% ± 1% target range.

Core inflation leaves out volatile food and prices set by the government, such as subsidised fuel, so it shows the underlying trend. Bank Indonesia says gold jewellery was the main driver of annual core inflation, following world gold prices, and university tuition fees drove the monthly rise of 0.10%.

Official sources: Bank Indonesia: CPI, September 2026

How fast are food prices rising in Indonesia?

Volatile food prices in Indonesia were 5.03% higher in September 2026 than a year earlier, up from 4.06% in August, according to Bank Indonesia's release of 1 October 2026. They rose 1.46% in the month.

Bank Indonesia names bird's eye chillies, red chillies, chicken meat, rice and eggs as the main contributors, citing lower production in some areas due to weather and higher input costs. The Finance Ministry's fiscal strategy directorate also links chicken demand to the Free Nutritious Meals programme and notes the effects of El Niño.

Official sources: Bank Indonesia: CPI, September 2026 · Ministry of Finance (DJSEF): press release, 1 October 2026

How fast are fuel and other regulated prices rising in Indonesia?

Administered prices in Indonesia were 3.25% higher in September 2026 than a year earlier, according to Bank Indonesia's release of 1 October 2026. In August the rate was 3.32%.

Administered prices are those set or regulated by government, such as fuel, electricity and airfares. In September, higher prices for non-subsidised fuels such as Pertamax Turbo, Dexlite and Pertamina Dex pushed the index up, while airfares fell. Subsidised fuel prices are set by the government and change less often.

Official sources: Bank Indonesia: CPI, September 2026

How confident are Indonesian consumers?

Bank Indonesia's Consumer Confidence Index was 118.5 in August 2026, up from 116.8 in July, according to its Consumer Survey released 9 September 2026.

An index above 100 means more respondents are optimistic than pessimistic. The index on current economic conditions rose to 109.4 from 107.9, and the consumer expectations index rose to 127.6 from 125.7. The survey is run monthly, so short swings are common and the trend over several months is more informative.

Official sources: Bank Indonesia: Consumer Survey, August 2026

Do Indonesian retailers expect prices to keep rising?

Indonesian retailers' Price Expectations Index for October 2026 was 146.5, down from 155.2 in the previous survey, according to Bank Indonesia's Retail Sales Survey of 10 September 2026. For January 2027 it was 166.0, down from 168.1.

An index above 100 means more retailers expect prices to rise than to fall; a lower reading means fewer expect increases. Bank Indonesia reads the drop as milder price pressure ahead. The index measures expectations, not actual price changes, which are recorded in the consumer price index.

Official sources: Bank Indonesia: Retail Sales Survey, August 2026

How fast are prices rising in Indonesia?

In 2025, consumer price inflation in Indonesia was 1.9%, according to the IMF. Since 2005 it has ranged from 1.6% (2021) to 13.1% (2006). It is 14th highest of 24 in East Asia & Pacific, where the median is 2.2%. Worldwide: 113th of 165.

How much do people in Indonesia spend?

In 2025, household consumption per person in Indonesia was $2,547, according to the World Bank. No year since 2005 has been higher. East Asia & Pacific median: $3,794; Indonesia is 10th highest of 12. World rank, highest first: 81st of 124.

What share of people in Indonesia live in extreme poverty?

According to the World Bank, the share of people living on less than $3.00 a day in Indonesia was 3.7% in 2025. That is the lowest since at least 2005.

What share of Indonesia lives below the poverty line?

In 2025, the share of people below the national poverty line in Indonesia was 8.5%, according to the World Bank. It is the bottom of the series, which starts in 2005.

How unequal are incomes in Indonesia?

According to the World Bank, the Gini index in Indonesia was 34.4 in 2025. Since 2005 it has ranged from 29.9 (2005) to 38.9 (2013).

How many people in Indonesia go hungry?

The latest figure from the FAO, for 2024, is 4.2%. It is the bottom of the series, which starts in 2015. East Asia & Pacific median: 15.4%; Indonesia is 17th highest of 17. Worldwide: 125th of 135.