Indonesia: Retail Industry Growth Stands at 3.7 Percent: Aprindo

• Oct 17, 2017

TEMPO.CO, Jakarta – Indonesia’s retail industry growth stood at 3.7 percent as of the end of the first half of 2017, said the Indonesia Retail Business Association (Aprindo) chairman Roy Nicholas Mandey. He predicts that the full-year figure will hit 7.5 to 8 percent.

“It’s lower than the first half of 2016 that grew 9 percent,” Mandey told Tempo yesterday in Jakarta.

He is hopeful that the growth will hit 9 percent just like last year. “But the reality is it will grow though slowing down,” Roy said.

Roy said that lower growth was caused by several factors, including stagnating commodity prices, middle-wage segment and a shift in spending patterns.

Consumer spending pattern has shifted from large baskets to small ones as delivery order services grow.

Roy said that people rarely go to stores anymore. Instead, they shop online or use online transportation service.

Data shows that online shop transactions make up 1.4 percent of total offline payments in retailindustry last year, according to Roy. He added that out of 97.3 internet users, only 8.7 of them make online transactions.

Source: https://en.tempo.co/read/news/2017/10/17/056912353/Retail-Industry-Growth-Stands-at-37-Percent-Aprindo