BI Survey: November's Retail Sales Increased Supported By Recreation, Food And Beverages

JAKARTA The Bank Indonesia (BI) survey stated that retail sales performance is expected to grow positively in November 2022.

Head of the BI Communication Department Erwin Haryono said this was reflected in the November 2022 Real Sales Index (IPR) which was recorded at 204.2, or grew positively by 1.6 percent year on year (yoy).

"The positive growing retail sales performance is predicted to be driven by the strong growth of clothing subgroups, cultural and recreational goods groups, as well as food, beverage and tobacco groups," he said when giving a written statement on Friday, December 9.

According to Erwin, retail sales are predicted to grow by 0.7 percent month to month (mtm) on a monthly basis.

"The fuel group of motorized vehicles, as well as information and communication equipment, are predicted to experience a slowdown due to limited demand and unfavorable conditions of the season or weather," he said.

Erwin added, in October 2022, retail sales growth on a monthly basis increased.

The IPR in October 2022 recorded a growth of 2.3 percent (mtm), improving from the previous month which contracted by 1.8 percent.

He said, improvements occurred in all groups, supported by improving motor vehicle fuel groups driven by smooth distribution. Followed by a clothing subgroup driven by discount programs implemented by a number of retail, and spare parts and accessories groups in line with reduced contractions.

Meanwhile, on an annual basis, retail sales performance also recorded positive growth as reflected in the IPR of October 2022 of 202.7, or positive growth of 3.7 percent (yoy).

"The performance was supported by improvements in the information and communication equipment group, amid a decline in the performance of other household appliances and spare parts and accessories, as well as a slowdown in clothing and motor vehicle fuel subgroups," he explained.

In terms of price, continued Erwin, respondents predict inflationary pressure in January 2023 will decline and April 2023 will increase slightly, in line with its sales forecast.

Meanwhile, the General Price Expectation Index (IEH) in January 2023 was recorded at 138.0 decreased from 146.0 in the previous month.

"April 2023 IEH was recorded at 140.8, slightly increasing from 140.7 in the previous month which was driven by an increase in prices during the Eid Al-Fitr National Religious Holiday (HBKN)," he concluded.