Electricity Tariffs, a Major Contributor to Indonesia's Annual Inflation in February 2026

According to a report from the Central Statistics Agency (BPS), Indonesia experienced an annual inflation rate of 4.76% (year-on-year/yoy) in February 2026.

This inflation figure is relatively high compared to the situation over the past two years. The trend of rising inflation rates has been ongoing since mid-2025 and continued into early 2026.

"The high inflation in January and February was influenced by the low base effect," said BPS Deputy for Distribution and Services Statistics Ateng Hartono at a press conference on Monday (2/3/2026).

He explained that previously, in January-February 2025, the government implemented a discount on electricity tariffs, which suppressed the Consumer Price Index (CPI) and triggered deflation. This decrease in the CPI caused the price level in January-February 2025 to be below the normal trend.

Then, with the absence of the discount in February 2026, electricity tariffs became the largest contributor to annual inflation, accounting for 2.17%.

Other commodities that were major contributors to annual inflation in February 2026 were jewelry gold with a contribution of 1.06%, fresh fish 0.23%, broiler chicken meat 0.22%, and rice 0.15%.

In February 2026, all 38 provinces in Indonesia experienced annual inflation. The highest inflation occurred in Aceh with a rate of 6.94% (yoy) and the lowest in Papua Pegunungan at 0.63% (yoy).