This research analyses a hypothetical scenario of an inflation surge to 17% at the onset of Prabowo Subianto's administration in Indonesia in 2025, highlighting a significant economic challenge following a period of inflation stability. The study aims to identify potential causes such as Rupiah depreciation, expansive fiscal policies, supply chain disruptions, global commodity price volatility, and erosion of market confidence, as well as to analyse their impacts on purchasing power, borrowing costs, socio-political stability, and international competitiveness. A descriptive-analytical approach combining qualitative and quantitative methods based on secondary data was employed. The results indicate that a combination of these factors would lead to detrimental economic and social consequences, necessitating robust policy responses. Various policy responses are explored, including monetary tightening, fiscal consolidation, foreign exchange interventions, supply-side policies, and communication strategies. This research presents strategic recommendations based on data analysis and expert insights to navigate inflationary pressures, for the sake of Indonesia's sustainable economic stability and growth.
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