Indonesia Retail Sales Fall Most in 3 Years

Indonesia's retail sales dropped 3.9% yoy in May 2026, following a 3.7% decline in the prior month and marking the second straight month of contraction. It was also the steepest annual fall since May 2023, highlighting persistent weakness in household spending amid elevated inflation, driven in part by higher non-subsidized fuel prices. Sales fell further for food, beverages, and tobacco (-4.1% vs -3.8% in April), clothing (-12.0% vs -7.0%), and other household equipment (-0.9% vs 0.6%). Sales of information and communication equipment remained deeply negative, albeit slightly improving (-18.4% vs -26.4%). Meanwhile, growth eased for automotive parts and accessories (11.2% vs 14.7%) and recreational goods (0.2% vs 0.7%). Fuel sales rose 0.3%, reversing a 0.9% drop in April. Monthly, retail sales fell 1.5%, moderating from April's 11.6% plunge, the sharpest since June 2022. Retail activity is expected to remain subdued as higher living costs continue to restrain consumer spending.

Indonesia’s retail sales fell 3.7% yoy in April 2026, reversing a 3.4% increase in the prior month and marking the first decline since April 2025. The pullback underscored weaker household spending conditions, with higher non-subsidized fuel prices weighing on consumers’ purchasing power. Sales shrank more sharply for clothing (-7.0% vs -2.4% in March), and purchases of information and communication equipment stayed deeply negative (-26.4% vs -26.4%). Sales of food, beverages, and tobacco shrank 3.8%, after a 4.7% rise in March, and fuel sales also weakened (-0.9% vs 2.1%). Growth eased for automotive parts (14.7% vs 15.5%) and recreational goods (0.7% vs 14.8%). In contrast, sales of other household appliances returned to growth (0.6% vs -3.5%). Monthly, retail sales plunged 11.6%, swinging from March’s 10.3% gain and logging the steepest fall since June 2022. Looking ahead, retail activity is likely to remain subdued as households continue to face pressure from elevated living costs.

Indonesia’s retail sales increased 3.4% yoy in March 2026, easing from a 6.5% rise in the prior month and marking the weakest growth since June 2025, as post-festive normalization and persistent cost pressures weighed on consumer spending. Sales growth slowed notably for food, beverages, and tobacco (4.7% vs 8.8% in February). Meanwhile, sales dropped for clothing (-2.4% vs 4.9%), other household appliances (-3.5% vs 0.5%), and information & communication equipment (-26.4% vs -28.3%). In contrast, spending strengthened for automotive parts and accessories (15.5% vs 13.1%) and cultural and recreational goods (14.8% vs 10.1%). Sales of automotive fuel rebounded, rising 2.1% after a 9.3% drop in February. On a monthly basis, retail sales surged 10.3%, accelerating sharply from a 4.1% rise in February and posting the strongest gain in a year. Looking ahead, retail activity is expected to soften amid higher non-subsidized fuel prices that pressure household purchasing power.