Indonesia Retail Sales Growth at 4-Month Peak

Indonesia’s retail sales rose 4.7% year-on-year in July 2025, accelerating from a 1.3% increase in the previous month and marking the third consecutive month of increase. It was the fastest pace since March, underpinned by ongoing government stimulus measures aimed at maintaining household purchasing power. Growth was driven by stronger demand for food, beverages, and tobacco (5.1% vs 2.4% in June), fuel (14.4% vs 12.1%), and cultural and recreational goods (5.2% vs 1.5%). Sales of automotive parts and accessories rebounded sharply (12.5% vs -0.9%), while household appliances turned positive (3.8% vs -5.9%). Simultaneously, sales of information and communication equipment contracted at a slower pace (-12.5% vs -17.9%), despite easing in clothing growth (0.2% vs 1.4%). On a monthly basis, retail activity declined 4.1%, the steepest drop in three months, reflecting the end of the recent holiday period and normalization after Eid-related spending.