BI Survey Finds Retail Sales Performance Collapsed In Early Semester II

Illustration (Photo: Doc. Bank Indonesia)

JAKARTA - The Bank Indonesia (BI) survey found that the retail sales performance in July 2023 as reflected in the Real Sales Index (IPR) decreased to 212.7. This level is lower when compared to June which amounted to 223.2.

Head of the BI Communications Department Erwin Haryono said that monthly retail sales growth is predicted to be in a contraction phase of 4.6 percent month to month (mtm). However, the IPR on an annual basis (year on year/yoy) grew positively by 6.3 percent.

The annual retail sales performance is predicted to remain strong in July 2023. The strong sales performance of retail is driven by food, beverage and tobacco groups and clothing subgroups that continue to grow positively, as well as spare parts and accessories groups that have improved," he said in a written statement on Wednesday, August 9.

According to Erwin, the slowing down was also triggered by the normalization of public demand after the school holiday period, National Religious Holidays (HBKN), and collective leave.

He explained, in June 2023 the IPR on an annual basis grew positively by 7.9 percent (yoy), an increase compared to the previous month which recorded a contraction of 4.5 percent (yoy).

"The increase occurred in the majority of groups with the highest increase, namely in the food, beverage and tobacco groups, followed by groups of motorized vehicle fuels and clothing subgroups," he said.

On a monthly basis, retail sales showed improvement despite being in a contraction phase of 0.3 percent (mtm).

He said the improvement occurred in several groups, especially the clothing subgroup, the food, beverage, and tobacco group, as well as the group of cultural and recreational goods, in line with the increase in domestic sales.

This is also accompanied by a price discount strategy carried out by retail traders, smooth distribution, and increased demand for the HBKN period, year-old mid-year sales, and the school holiday season.

"In terms of price, respondents predict inflationary pressure will decline in September 2023, but it is predicted that it will increase in December 2023 in line with future sales expectations," he said.

Meanwhile, the General Price Expectation Index (IEH) in September 2023 was recorded at 115.9, lower than the previous period of 117.7. Meanwhile, the IEH in December 2023 was recorded at 130.0, higher than the previous period of 123.0.