Indonesia achieved a 3.7% inflation rate in 2023, within the central bank’s 2%-4% target. For 2024, the target narrows to 1.5%-3.5%, with Bank Indonesia forecasting a 3.2% inflation rate, close to the upper limit of this range. Challenges include higher core inflation and potential cost increases in food and shipping, though there is optimism that tight monetary policy could help meet the new target.