Wanti-wanti Entrepreneurs Retail Growth Will Be Disturbed Due To Government Budget Efficiency

JAKARTA - Hotels and retail are one of the sectors affected by the government's budget efficiency. It is also believed that this will have a significant impact on the retail sector.

Chairman of the Indonesian Shopping Center Management Association (APPBI) Alphonzus Widjaja said the hotel and retail sectors had links. So, if the hotel sector is disrupted, it is feared that retail growth will not be significant.

"The budget cuts carried out by the government have no direct impact on the retail industry. Those who are directly affected are usually the hotel industry, one of which in the end will have an impact on retail," said Alphonzus when met after the 2025 Eid Discount BINA Opening Ceremony in Jakarta, Friday, March 14.

"And actually now it's starting to feel that way," he continued.

Alphonzus said that providing incentives for the retail sector would not be enough to boost growth. According to him, the government should be able to provide direct stimulus to the community. Thus, people again have the ability to shop.

"If the incentives are given to retail, in my opinion it is reversed. Right, what must be encouraged is that the community must have purchasing power. Well, to encourage people's purchasing power, of course, they must provide a lot of incentives, stimulus to economic activities that occur in society," he said.

According to Alphonzus, when people's purchasing power increases, retail growth can be significant.

"If the purchasing power jack increases, it will automatically shop. So, in my opinion, it is more appropriate for incentives or stimulus to be given to drive the economy," he said.

"Don't go straight to retail in my opinion, so the strategy must be reversed. In the end, that must be done by the government," he concluded.