Indonesia retail sales projected to grow 0.9% in July

Bank Indonesia (BI) projects that the Real Sales Index (IPR) for July 2026 will reach 224.4, representing a 0.9% year-on-year growth. This follows a 3.0% contraction in June 2026.

Despite the projected recovery in retail activity, consumer confidence has declined. The Consumer Confidence Index (IKK) for July 2026 is recorded at 116.8, down from 117.8 in June. While still within the optimistic zone (above 100), consumers are showing less aggressive spending behavior.

Growth is expected to be driven by three main categories: spare parts and accessories (projected at 10.8% yoy), other household equipment (2.5% yoy), and food, beverages, and tobacco (1.6% yoy), which recovers from a contraction in June. Conversely, information and communication equipment is expected to contract by 20.8% yoy, while cultural and recreational goods are projected to fall by 10.4%.