The Bank Indonesia Survey Explores Retail Sales To Stay Positive

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA Bank Indonesia (BI) revealed that retail sales performance is expected to grow positively in December 2022.

Head of the BI Communication Department Erwin Haryono said this was reflected in the December 2022 Real Sales Index (IPR) of 216.4, or a positive growth of 0.04 percent year on year (yoy).

"The positive growing retail sales performance was driven by the growth of information and communication equipment groups which recorded an increase from the contraction in the previous month," he said in a written statement, Tuesday, January 10.

Erwin explained, monthly retail sales are estimated to grow by 6.3 percent month to month (mtm), an increase from 0.4 percent in the previous month.

He said, the increase occurred in the majority of groups, especially the clothing sub-group, the information and communication equipment group, which was supported by the high sales of digital tv, as well as the food, beverage, and tobacco group.

"Increasing is also driven by celebrations of national religious holidays, holidays and the end of the year, as well as price discount strategies that support domestic demand," he said.

According to Erwin, in November 2022, retail sales growth on an annual basis continued to grow positively.

IPR November 2022 recorded growth of 1.3 percent (yoy), although lower than the growth in the previous month of 3.7 percent.

The group of cultural and recreational goods was recorded to have increased, while the information and communication equipment group and other household appliances improved even though they were still in the contraction phase.

On a monthly basis, retail sales performance also recorded a positive growth of 0.4 percent mtm.

This performance was supported by growth in other household appliances and spare parts and accessories that improved after contracting in the previous month.

In terms of price, respondents estimate inflationary pressures in February and May 2023 (three and six months to come) will decline.

The General Price Expectation Index (IEH) in February and May 2023 was recorded at 134.6 and 140.2 respectively, down from 138.0 and 140.8 (January and April 2023).

"Respondents inform that the price reduction is expected to occur due to sufficient stock of goods," Erwin concluded.