Research

Indonesia: Slowing Consumption, Rising Prices. Stagflation Risk?

market-avatar

Algo Research Team

Economics | Nov 09, 2025 | Views: 1098

The content provided here is for informational purpose only. It is not an advise or recommendation. Please do your own research.
content-img

Key Summary:

  • Suboptimal private consumption; IDR800tn spending gap
  • Government policies driving supply-side inflation higher
  • Structural economic issues and risks must be addressed

The Indonesian government has recently released several closely watched economic indicators, including the country’s 3Q25 GDP growth and inflation rate as of Oct-25.


We observe an interesting pattern where household consumption growth has decelerated, yet prices have continued to climb meaningfully, raising the question of whether Indonesia is experiencing stagflation risks.

How was our research?

DISCLAIMER: Algo is an independent research platform and is not affiliated with any financial institution. We are not a licensed securities dealer, financial advisor, broker, or investment bank. The contents shared across our website, and social media platforms are intended for informational purposes only and reflect our views and opinions. It is not meant to be construed as financial advice and/or a recommendation to buy or sell an asset. Past performance does not guarantee future results. As a research platform, our contents are made to provide data-driven information and research-based articles, and should not be used as a basis for making any investment decisions. We strongly encourage you to conduct your own research and consult with a licensed financial advisor before making any investment decisions. Algo is not regulated by OJK (Otoritas Jasa Keuangan) and does not provide any investment services. We are not responsible for any financial decisions you make based on the information provided. All content is presented with the intent of informing only.