menu_open Columnists
We use cookies to provide some features and experiences in QOSHE

More information  .  Close

Stubborn inflation in Indonesia could undermine trust in the government

15 0
14.05.2026

As healthcare, education and housing costs rise sharply across Indonesia, public frustration is increasingly colliding with political rhetoric that appears disconnected from everyday economic realities.

Indonesia’s politics has always carried a certain theatrical quality, but recent remarks by Cabinet Secretary Teddy Indra Wijaya risk turning governance into performance at precisely the moment when substance is most needed. His warning about an ‘inflation of observers’ – a swipe at critics and analysts – may have been intended to defend the administration’s credibility. Instead, it has struck a nerve across a society grappling with far more tangible forms of inflation: the kind that empties wallets, reshapes life choices and quietly erodes trust.

The irony is difficult to ignore. The Cabinet Secretariat’s formal mandate is not ideological combat or narrative management but governance support – coordinating policy, resolving inter-ministerial friction and ensuring that presidential directives translate into outcomes. Yet its public discourse has drifted towards defending authority rather than addressing the lived economic strain facing millions of Indonesians. In a country where political legitimacy has long hinged on delivering material improvements, this rhetorical pivot feels not only misplaced but politically risky.

The inflation confronting Indonesians is not abstract. It is stubborn, uneven and deeply personal. Healthcare costs, for instance, are surging at rates that dwarf headline inflation. Projections by Indonesian’s Financial Services Authority suggest medical inflation could reach between 13.6 and 19.4 per cent in 2025 – among the highest in the Asia-Pacific. These figures are not merely technical........

© Pearls and Irritations