Indonesia’s retail sales to grow modestly in Oct. – survey

Indonesia’s retail sales are projected to increase by a modest one per cent year-on-year in October, according to the latest Retail Sales Survey released by Bank Indonesia (BI) on Tuesday.

While the sector experienced robust growth in September, driven by the Indonesia Independence Day celebrations, the momentum is expected to slow down in October. Retailers anticipate stronger sales in categories such as cultural and recreational goods, automobile parts and accessories, and clothing.

However, inflationary pressures are looming, and retailers expect prices to rise in the coming months, particularly during the Christmas and New Year holiday seasons and the holy month of Ramadan in March 2025.

Bank Indonesia, in its efforts to stimulate economic growth, lowered key interest rates by 25 basis points in mid-September. The central bank also forecasts GDP growth of 5.2 per cent for both 2024 and 2025.

Despite these measures, the central bank remains committed to maintaining price stability, with the inflation rate projected to stay within the target range of 2.5 per cent +/- 1 per cent through 2025.

Attribution: Bank Indonesia report

Subediting: M. S. Salama