• About UGM
  • SIMASTER
  • SINTESIS
  • Public Information
  • SDGs
  • English
    • Bahasa Indonesia
    • English
Universitas Gadjah Mada Universitas Gadjah Mada
Faculty of Economics and Business
  •  About Us
    • Overview
    • History of The Establishment
    • Mission & Vission
    • School Values
    • School Leadership
    • Senate Leadership
    • Department Leadership
    • Study Program Leadership
    • Unit Leadership
    • Faculty Advisory Board
    • Annual Report
    • Campus Facilities
    • Visual Identity
    • News Room
    • The 70th Anniversary
  • Academic Programs
    • Undergraduate Program
    • Master Program
    • Doctoral Program
    • Profession Program
    • Short Academic Programs
    • Professional Programs & Certification
    • International Undergraduate Program
    • International Doctorate in Business (IDB)
    • Academic Calendar
    • Rooms and Events
  • Faculty & Research
    • School Memberships
    • School Accreditation
    • International Networks
    • Faculty Members
    • Visiting Professor & Research Fellows
    • Professional Staffs
    • Publications
    • Published Journals
    • Working Papers
    • Fields of Study
    • Supporting Units
    • International Conference Partnership
    • Call for Papers
    • Community Service
    • Faculty Library
  • Admission
  • Home
  • News

FEB UGM Lecturer: Regional Data Does Not Always Reflect Indonesia’s National Economy

  • News
  • 11 June 2025, 10.33
  • By : shofihawa
Sekar Utami dari FEB UGM menjelaskan bahwa kenaikan harga di daerah tidak bisa dijadikan acuan untuk menggambarkan kondisi ekonomi nasional.

Have you ever read a news report about the rising price of a specific good in one region and concluded that inflation in Indonesia is currently high? Be careful — that might be a misleading assumption. Misinterpretations of economic data often occur in public discourse, particularly when micro-level data is generalized to represent macroeconomic conditions. These misinterpretations can distort public perception.

“One of the most common mistakes is using the price increase of a single item in a specific region to reflect the national inflation rate,” said Sekar Utami Setiastuti, Ph.D., Lecturer and Head of the Economics Undergraduate Program at the Faculty of Economics and Business, Universitas Gadjah Mada (FEB UGM), during a press briefing on Wednesday (May 14, 2025) at the Economic and Business Journalism Academy hosted by FEB UGM.

Sekar emphasized that using microeconomic data to represent macroeconomic conditions directly can be misleading.

During the session, Sekar also provided guidance on carefully considering economic growth projections. Different economists may offer varying forecasts, and international institutions such as the World Bank and the International Monetary Fund (IMF) frequently revise their estimates as new data emerges. This can be attributed to the dynamic and unpredictable nature of the economy, especially during periods of crisis. The ever-shifting patterns in economic behavior make macroeconomic forecasting inherently difficult.

To understand Indonesia’s macroeconomic landscape, several key indicators can be analyzed. One primary indicator is Gross Domestic Product (GDP) growth. Examining the growth patterns of GDP-contributing sectors helps identify which sectors are expanding or declining. For example, Sekar highlighted Indonesia’s low gross capital formation, reflecting a decline in public investment caused by budget efficiency measures. Meanwhile, government purchases of material goods are categorized under government expenditure.

Inflation is another important indicator of economic conditions. However, it is often misinterpreted. Not every price increase signals inflation. Inflation is measured by the rise in the Consumer Price Index (CPI), which accounts for a broad range of goods and services — not just a single commodity. Sekar illustrated how inflation can reflect broader economic crises. For instance, in 2020, during the COVID-19 pandemic, inflation remained low due to weakened consumer purchasing power following mobility restrictions rather than supply-side issues. This demonstrates how inflation can provide insights into the prevailing economic climate.

Lastly, the exchange rate is another key macroeconomic indicator. Public sentiment toward the government greatly influences currency value. Commenting on the weakening rupiah this year, Sekar addressed Bank Indonesia’s (BI) decision to refrain from raising interest rates. Instead, BI issued Bank Indonesia Rupiah Securities (SRBI) targeting non-bank investors, aiming to attract capital inflows.

In her closing remarks, Sekar underscored the crucial role of journalists in shaping public opinion and influencing societal perceptions. She urged journalists to be more discerning when reporting economic issues — especially in crafting headlines — to ensure they are not misleading and that the information remains accurate and reliable.

Report by: Najwah Ariella Puteri
Editor: Kurnia Ekaptiningrum
Sustainable Development Goals
SDG 4 SDG 8 SDG 10 SDG 16 SDG 17

Views: 105
Tags: SDG 10: Reduced Inequalites SDG 16: Peace Justice And Strong Institutions SDG 17: Partnerships For The Goals SDG 4: Quality Education SDG 8: Decent Work And Economic Growth SDGs

Related Posts

Apia Dewi Agustin

The Story of Apia, PMDSU Scholarship Recipient and Best Graduate of the Master of Science in Accounting FEB UGM

News Friday, 25 July 2025

Do you still remember Apia Dewi Agustin? Her name once captured the public’s attention with her inspiring story. This young woman from a remote village in Magetan Regency, East Java, successfully pursued her undergraduate degree and then continued her Master’s and Doctoral studies at the Faculty of Economics and Business, Universitas Gadjah Mada (FEB UGM), free of charge, thanks to her academic achievements.

Now, Apia has once again made her alma mater proud.

Primastuti Indah Suryani

Optimizing Social Media to Boost MSME Visibility

News Friday, 25 July 2025

Building a brand and reaching consumers no longer rely solely on conventional promotions. Social media has become a primary channel for shaping a business’s image.

Field Trip GSW 2025

GSW 2025 Invites International Students to Explore Industry and Art in Yogyakarta

News Friday, 25 July 2025

The clinking sound of metal echoes through a silver craft workshop in Kotagede, Yogyakarta. Skilled hands carefully hammer sheets of silver on a steel anvil.

Andar Danova L Goeltom

Green Jobs and Green Curriculum, the Key to Indonesia’s Tourism Future

News Thursday, 24 July 2025

Significant changes are taking place in the global tourism industry. Today’s travellers, especially younger generations and international tourists, are increasingly concerned about the environmental impact of their travel activities.

Latest News

  • The Story of Apia, PMDSU Scholarship Recipient and Best Graduate of the Master of Science in Accounting FEB UGM
    July 25, 2025
  • Optimizing Social Media to Boost MSME Visibility
    July 25, 2025
  • GSW 2025 Invites International Students to Explore Industry and Art in Yogyakarta
    July 25, 2025
  • Green Jobs and Green Curriculum, the Key to Indonesia’s Tourism Future
    July 24, 2025
  • Unemployment Rate Declines, FEB UGM Lecturer Says Decent Work Remains a Challenge
    July 24, 2025

Related Article

  • The Story of Apia, PMDSU Scholarship Recipient and Best Graduate of the Master of Science in Accounting FEB UGM
    July 25, 2025
  • Optimizing Social Media to Boost MSME Visibility
    July 25, 2025
  • GSW 2025 Invites International Students to Explore Industry and Art in Yogyakarta
    July 25, 2025
  • Green Jobs and Green Curriculum, the Key to Indonesia’s Tourism Future
    July 24, 2025
  • Unemployment Rate Declines, FEB UGM Lecturer Says Decent Work Remains a Challenge
    July 24, 2025
Universitas Gadjah Mada

Universitas Gadjah Mada
Faculty of Economics and Business

Jln. Sosio Humaniora No.1, Bulaksumur, Yogyakarta, Indonesia 55281

Map & Direction
More Contact Information

Department

  • Accounting
  • Economics
  • Management

Faculty Directory

  • Public Information
  • Room Management
  • Asset Management
  • Cemetery Management

Alumni

  • Alumni Community
  • Alumni Services
  • Tracer Study
  • Jobs & Internships
  • Scholarships

Social Media

© 2025 Faculty of Economics and Business UGM

DisclaimerSite Map

💬 Need help?
1
FEB UGM Official WhatsApp
Hello 👋
Can we help you?
Open chat