2026.07.0903:21:39UTC+00Indonesia Retail Sales Fall Most in 3 Years

Indonesia’s retail sales fell 3.9% year-on-year in May 2026, after a 3.7% decline in April, marking a second consecutive month of contraction. It was the sharpest annual drop since May 2023, underscoring persistent weakness in household spending amid elevated inflation, partly driven by higher non-subsidized fuel prices.

Sales declined further in several key categories, including food, beverages, and tobacco (-4.1% vs -3.8% in April), clothing (-12.0% vs -7.0%), and other household equipment (-0.9% vs 0.6%). Sales of information and communication equipment remained deeply negative, though the pace of decline eased (-18.4% vs -26.4%).

Meanwhile, growth slowed for automotive parts and accessories (11.2% vs 14.7%) and recreational goods (0.2% vs 0.7%). Fuel sales edged up 0.3%, reversing a 0.9% fall in April.

On a monthly basis, retail sales dropped 1.5%, following an 11.6% plunge in April—the steepest monthly fall since June 2022. Retail activity is expected to remain subdued as higher living costs continue to weigh on consumer spending.