Retail sales in Indonesia in October soared 17.6 per cent year-on-year according to Bank of Indonesia data.
That was only marginally slower than the 17.6 per cent recorded in September, attributed to weaker demand for ‘cultural and recreational goods’.
The bank surveys 650 retailers in 10 major Indonesian cities, thus creating a bellwether of trends in the organised retail sector and excludes sales from ‘ma and pa’ operators.
The bank predicts sales growth will slow marginally in November while the growth rate will remain in the same similar double figures in coming months.
But it predicts a softening in spending from April next year, as consumer demand eases.
A change of government has done little to diminish consumer demand or spending, despite an apparent move to clamp down on profligacy at administrative level.
The bank said inflation will continue to be a problem, especially with a planned increase in petrol prices, which are set by the state and subsidised, despite oil falling to a four year low in commodity trading.
Source insideretail.asia