Indonesia Retail Sales Rise for First Time in 4 Months

Indonesia’s retail sales increased 1.1% year-on-year in July 2026, ending three consecutive months of declines, supported by government measures aimed at cushioning households from persistent cost pressures. The rebound was led by food, beverages and tobacco (2.4% vs -3.6% in June) and clothing (2.8% vs -3.1%). However, growth in automotive parts sales slowed sharply (5.1% vs 18.8%). Meanwhile, spending remained weak on fuel (-7.7% vs -1.5%), information and communication equipment (-20.6% vs -20.2%) and recreational goods (-6.7% vs -6.2%). Household equipment sales also fell 4.9%, reversing a prior 2.8% increase. On a monthly basis, retail sales edged down 0.1%, shifting from a 0.7% rise in June. Retail activity may grow further in August as government support measures continue, though elevated inflationary pressures are likely to constrain the pace of recovery.

Indonesia’s retail sales dropped 3.0% year-on-year in June 2026, easing from a 3.9% decline in the prior month and marking the mildest fall since the downturn began in April. The softer decrease reflected the initial impact of government support measures aimed at cushioning households from persistent cost pressures and encouraging spending. Sectoral performance stayed uneven: food, beverages and tobacco sales slipped 3.6% (vs -4.1% in May), clothing fell 3.1% (vs -12.0%), and information and communication equipment plunged 20.2% (vs -18.4%). Recreational goods dropped 6.2% after a slight gain previously, while fuel sales reversed into a 1.5% decline. In contrast, household equipment rebounded 2.8% (vs -0.9%), and automotive parts surged 18.8% (vs 11.2%). On a monthly basis, retail sales rose 0.7%, the first rise in three months. With fiscal support measures gaining traction, retail activity is expected to strengthen in July, offering tentative signs of stabilisation in consumer demand.

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.