Jakarta. The Indonesian government claimed on Wednesday that national inflation remains under control ahead of the Eid al-Fitr holidays — a period typically marked by surging commodity prices — despite February data showing inflation nearing the 5% mark.

Finance Minister Purbaya Yudhi Sadewa explained that the uptick in February 2026 inflation was largely a "base effect" resulting from the expiration of household electricity subsidies in early 2025.

Official data recorded February’s year-on-year inflation at 4.76%. However, Purbaya argued that this figure does not accurately reflect underlying inflationary pressures.

“Excluding the impact of the electricity discount, February's inflation is estimated at only 2.59%,” Purbaya told a press conference in Jakarta. “This suggests there is significant room for the economy to grow faster without triggering an inflationary spiral.”

The Minister noted that market perceptions are often skewed when observers focus solely on headline figures without accounting for year-on-year base effects. Fundamentally, he argued, price pressures remain within a safe threshold.

Core inflation remains relatively low at 1.4%, influenced by rising gold prices and increased consumer demand during the Ramadan period. Purbaya added that while national economic activity is gaining momentum, it is far from reaching a state of "overheating."

“Our growth is steady; we are not growing too fast, and the economy is certainly not overheating,” he said.

Regarding food prices, the Minister attributed the recent spike to seasonal weather patterns and increased demand for staples such as poultry, fresh fish, and chili. Despite these fluctuations, food inflation remains moderate at below 5%.

Addressing the rise in global crude oil prices, Purbaya confirmed that the government would utilize the state budget to intervene and dampen the volatility of domestic fuel prices.

“The impact of rising commodity prices, including crude oil, will continue to be managed by the government. The state budget will act as a 'shock absorber' to ensure that public purchasing power remains protected,” Purbaya added.

Purbaya has consistently maintained an optimistic outlook for the nation’s economy, repeatedly stating that Indonesia is poised to achieve a minimum growth rate of 6% this year, breaking a multi-year period of stagnation at the 5% level.