Indonesia Retail Sales Growth at 5-Month High

Indonesia’s retail sales rose 1.3% yoy in August 2026, accelerating from a 1.1% gain in the prior month and extending growth for a second straight month. The increase marked the fastest pace since March, supported by continued government measures to cushion households against persistent cost pressures. Sales growth strengthened for food, beverages and tobacco (2.6% vs 2.4% in July), while automotive parts sales continued to expand at a slower pace (3.9% vs 5.1%). In contrast, clothing sales fell sharply (-12.4% vs 2.8%). Declines also persisted in fuel (-5.7% vs -7.7%), information and communication equipment (-10.9% vs -20.6%), recreational goods (-0.3% vs -6.7%), and household equipment (-5.2% vs -4.9%). On a monthly basis, retail sales increased 0.8%, rebounding from a 0.1% decline in July and marking the strongest gain in five months. Retail activity is expected to continue expanding in September, although growth is projected to remain broadly steady amid elevated price pressures.

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.