Indonesian retail sales soar

Retail sales in Indonesia in September rose 17.9 per cent year on year according to store data.

That was double August’s growth rate of 8.9 per cent, according to the Bank of Indonesia.

The calculation is based on sales data reported by 650 retailers in 10 major Indonesian cities, and includes estimates for the month of October.

Retailers say increased sales of computers and smartphones contributed significantly to the September increase. A more ongoing trend appears to be a steadily increasing pool of disposable income in the nation.

Looking forward, retailers surveyed are less optimistic, however. The bank says they fear inflation over the next three months, driven by reductions in fuel subsidies planned by the incoming government, will slow the rate of retail sales growth.

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