JAKARTA - The Central Statistics Agency (BPS) noted that Indonesia's economic growth reached 5.11 percent on an annual basis or year on year (yoy) at the first quarter of 2024.
Chairman of the Indonesian Retailers Association (Aprindo) Roy Nicholas Mandey assessed that Indonesia's economic growth above 5 percent will become a conducive climate for retailers.
According to him, Indonesia's economic growth in the first quarter of 2024 was driven by household consumption of 4.91 percent and its contribution to Gross Domestic Product (GDP) reached 54.93 percent.
"In the first quarter of 2024, BPS (Indonesian economic growth) has recorded a total of 5.11 percent, that's okay. If we hear 4.9 percent or 4.8 percent, right, it means that retail is desperate, that's it. But if we still hear 5 percent, then that's something that is quite conducive to retailers," said Roy at the Halal Bihalal event in Manado Spice, Jakarta, Tuesday, May 7.
Roy revealed that the growth in household consumption by 54.93 percent was due to consumer confidence or the real sales index being still above the moderate figure.
"Our consumer confidence is 125-126. Above 100, it means that consumers still believe in the economic situation. So, they consume. If consumers do not have consumer confidence, they will not consume," he said.
He estimated that Indonesia's economic growth would slow down slightly in the second quarter of 2024.
This is because people will tighten their belts by holding back spending ahead of the new school year.
"It will definitely go down because after Lebaran every year, people tighten their belts to hold back spending, because of what? Preparations for them to enter June or July if they have children," he said.
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Thus, Roy projects household consumption in the second quarter of 2024 will slow down, due to the end of the elections and Eid.
Thus, retail transaction growth will also decrease.
"In the second quarter, it is projected to be around 4 percent to 5 percent. So the margin is thinner," concluded Roy.
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