Indonesia: Growth in retail sales picks up in February
In February, retail sales grew 9.1% over the same month in the prior year, up from January’s 7.2% figure but slightly below the Bank’s initial estimate of 10.9%. February’s figure was driven by healthy expansions in all subsectors except information and communication equipment. February’s figure was likely buoyed by government fiscal support to working-class voters in the build-up to the April 2019 general elections, and muted price pressures supporting consumers’ purchasing power.
Retail sales are likely to remain firm in the coming months thanks to ongoing public spending measures and mild inflation. Indeed, according to the Bank of Indonesia’s survey, retail sales should have grown 8.0% in March.