Minister Of Industry Says Retail Industry Is Getting Better After COVID-19

JAKARTA - Minister of Industry (Menperin), Agus Gumiwang Kartasasmita revealed that the domestic retail industry has recovered after the COVID-19 pandemic. In fact, he said, the retail industry had reached its pre-Covid point or before 2020.

"Alhamdulillah, it's getting better. It's at the point before COVID. In fact, it's better than 2019. Alhamdulillah," Agus said at the Business Matching of Food and Furniture IKM with HIS HIPPINDO & Ecosystem in Jakarta, Thursday 2 May.

Quoting Bank Indonesia data in February 2024, Agus emphasized that the real sales index (IPR) increased to 214.1 or grew 6.4 percent on an annual basis (yoy).

This IPR, continued Agus, was supported by the food, beverage and tobacco industry which recorded an increase of 9.1 percent yoy.

Agus also said that the increase in the three was dominated by purchases from the middle class which were considered to have high spending capacity and power.

"Millennials also have a larger shopping habit," continued Agus.

Agus further added that the increase in the retail industry was considered important because it was a reflection of people's purchasing power which also experienced a significant increase.

"Because if people's purchasing power doesn't increase, it's impossible for people to be able to shop and that in turn will affect the growth of the retail industry and the growth of the manufacturing industry," explained Agus.

Agus said that the presence of several modern retail stores could be an opportunity for Small and Medium Industry (IKM) players who can act as suppliers in retail stores so that products can be marketed more widely.

This is also supported by several regulations from the government in the form of structuring and fostering traditional markets and shopping centers as well as modern shops that are required to include MSMEs.

"In the industrial context, small and medium industries display domestic products," concluded Agus.