BI Reveals Retail Sales Will Continue to Grow Strongly in December 2023

Rupiah (Photo: Antara)

JAKARTA - Bank Indonesia (BI) announced that retail sales performance in December 2023 will continue to grow strongly. This is reflected in the December Real Sales Index (IPR) of 217.9 or an annual growth of 0.1 percent (yoy).

Executive Director of the BI Communications Department, Erwin Haryono, said that the continued strong retail sales performance was driven by increasing growth in the Motor Vehicle Fuel and Food, Beverage and Tobacco Groups.

"On a monthly basis, retail sales are also predicted to increase, with growth of 4.8 percent (mtm)," he explained in his official statement, Wednesday, January 10.

Erwin said that the performance of all groups is predicted to increase, especially in the Information and Communication Equipment Group, Clothing Sub-group, and Food, Beverage and Tobacco Group in line with the celebration of National Religious Holidays (HBKN) Christmas and New Year holidays which increase domestic demand, as well as strategies discounts from retailers.

In November 2023, the IPR was recorded to remain strong at 207.9 or an annual growth of 2.1 percent (yoy). The continued strong retail sales performance was mainly driven by the Clothing Sub-group and the Motor Vehicle Fuel Group which grew higher compared to the previous month.

On a monthly basis, retail sales continued to grow by 0.2 percent (mtm), mainly supported by increased growth in the Parts and Accessories Group and the Clothing Sub-group.

In terms of prices, the General Price Expectation Index (IEH) for February and May 2024 was 129.3 and 132.4 respectively, lower than the previous month's IEH of 133.1 and 137.8 respectively. Respondents estimate that the IEH will decrease in May 2024 in line with the end of the Idul Fitri HBKN period.