Bank Indonesia: Retail Sales Grow In April 2023

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA Bank Indonesia informs that the annual retail sales performance is expected to remain strong in April 2023.

Head of the BI Communication Department Erwin Haryono said this was reflected in the April 2023 Real Sales Index (IPR) of 241.6 or grew positively by 1.0 percent year on year (yoy).

"The strong retail sales are mainly supported by an increasing group of cultural and recreational goods, as well as other household appliances groups, motorized vehicle fuels, and improved spare parts and accessories," he said in a written statement on Wednesday, March 10.

According to Erwin, monthly retail sales are estimated to grow 12.2 percent month to month (mtm), higher than the previous month's growth of 7.0 percent.

"The increase in retail sales occurred in the majority of groups, especially in the information and communication equipment group, clothing subgroups, as well as food, beverage and tobacco groups in line with the Ramadan and Eid al-Fitr 1444 H/ In addition, retail discount strategies were also encouraged, as well as smooth distributions that encourage increasing domestic demand," he said.

Erwin added, in the period March 2023 the IPR was recorded at 215.3 or on an annual basis grew by 4.9 percent yoy, an increase compared to the previous month which was 0.6 percent.

He said the increase occurred in several groups, especially in food, beverage and tobacco groups, cultural and recreational goods, as well as clothing subgroups.

Then, monthly retail sales grew positively by 7.0 percent mtm in all groups, especially in groups of cultural and recreational goods, food, beverages and tobacco as well as spare parts and accessories in line with the increase in domestic demand.

Erwin also said that in terms of price, respondents estimated that inflationary pressures in June and September 2023 would decrease.

The June and September 2023 General Price Expectation Index (IEH) were recorded at 124.5 and 121.5, respectively, lower than 130.3 and 128.1 in the previous period. The decline in prices is in line with the availability of goods supply to meet demand," he concluded.