Time for Strategy Correction
Monday, 4 July 2022
Annual inflation in Indonesia is at the highest in the last five years. The government and Bank Indonesia must correct their fiscal and monetary policies to prevent even more uncontrollable inflation.

THE market has predicted that inflation in Indonesia will rise in the next few months. However, the Central Statistics Agency’s (BPS) last Friday announcement still caused quite a market shock. As of June, annual inflation in Indonesia jumped to 4.35 percent per year, the highest in the last five years. This annual inflation has surpassed the target limit set by the government and Bank Indonesia (BI), which was pegged at only four percent.
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