Indonesia’s retail sector is resilient to slower economic growth, with strong growth forecast ahead.
Andreas Kartawinata, head of government and association relations of the Indonesian Shopping Centers Association (APPBI), says the retail sector will grow 15 per cent by the end of 2014.
The country’s GDP growth is forecast to slow from 5.6 per cent in 2013 to 5.3 per cent this year, however, the retail sector will thrive. The Java Great Sale Festival, linking more than 200 shopping malls in a major promotion in August, will help drive the growth.
Another driving force behind the continuous growth in retail sector is the growing youth population.
“The increasing number of young people is the main target of foreign investors, including fashion and personal care retailers,” said Yongky Surya Susilo, an expert at Association of Indonesian Retailers.
Also, the middle-class and affluent consumers in Indonesia is expected to grow in both size and purchasing power, offering immense opportunity for retailers.