Indonesia Retail Sales Log Strong Close to 2025

MT Newswires Live01-12

Indonesian retail sales in December are expected to expand by 4.4% on year, following on a 6.5% on-year increase logged in November, reported Bank Indonesia on Monday.

Retail sales in Indonesia in December were especially strong in the categories of spare parts and accessories; food; beverages and tobacco; cultural and recreational goods, and automotive fuel. Year-end holiday spending also boosted sales, added Bank Indonesia.

On month in December, retail sales are expected to rise by 4% from November, added the nation's central bank.

Retail survey respondents in December expected a build-up of inflationary pressures in the next three months, through February, followed by milder price pressures in the following three months, added Bank Indonesia.

The relatively robust Indonesia monthly retail sales reports are roughly in line with the most-recent Bank Indonesia reports on the nation's gross domestic product (GDP) and outlook.

In late November, Bank Indonesia estimated national GDP growth in 2025 in the 4.7% to 5.5% range, "before accelerating in 2026."

In mid-November, the International Monetary Fund (IMF) issued a similar forecast, projecting that Indonesia GDP would expand by "5% in 2025 and 5.1% in 2026.

Inflation in Indonesia with central bank targets will likely obviate any need for monetary tightening in 2026, noted the IMF, which called the nation's economy, "a global bright spot."

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