Indonesia Investments had actually expected to see modest deflation in March 2020 amid the economic slowdown. For example, there occurred an enormous decline in demand for hospitality services amid COVID-19 restrictions, while March is also typically a month with limited price pressures on foodstuffs because of the start of the harvest season.

And, indeed, based on data from Statistics Indonesia (BPS), prices of foodstuffs rose very modestly overall (+0.10 percent m/m), while the transportation expenditure group showed deflation (-0.43 percent m/m) in March 2020. However, BPS Head Kecuk Suhariyanto said rising prices of gold (a key safe haven asset in times of turmoil) and jewelry were the key factors behind the overall March 2020 inflation rate.


This article discusses the following:

Indonesia's consumer price index in March 2020.

Why has there occurred a sugar shortage on the Indonesian market in the first quarter of 2020?

What is the impact of COVID-19 on Indonesian inflation?

This article is part of the March 2020 update. To purchase the report, please send an email to or a WA text message to +62(0)8788.410.6944 for further information.

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Poll Indonesia Investments:

According to you at what pace will the Indonesian economy grow in 2020?

Voting possible:  -


  • Lower than 0.0% (26.8%)
  • Higher than 2.0% (17.9%)
  • 0.5% - 1.0% (15.9%)
  • 0.0% - 0.5% (15.8%)
  • 1.0% - 1.5% (11.8%)
  • 1.5% - 2.0% (11.8%)

Total amount of votes: 1025