Newly released data reflects a normalization in consumer sentiment after heightened demand earlier in the year driven by the Idul Fitri holiday period, and tighter monetary policy may weigh on consumer confidence and retail sales in the months ahead.
Costly plastic: Residents buy plastic products on April 6 at Johar Market in Semarang, Central Java. Prices of plastic-based products at the market have risen since early April due to disrupted raw material imports from the Middle East. (Antara/Aprillio Akbar)
Newly released data reflects a normalization in consumer sentiment after heightened demand earlier in the year driven by the Idul Fitri holiday period, and tighter monetary policy could weigh on consumer confidence and retail sales in the months ahead.According to preliminary data published by Bank Indonesia (BI) on Thursday, the retail sales index (RSI) was projected to have declined to 225 points in May, marking a 0.9 percent decrease from 226.9 points registered in the preceding month and a 3.1 percent contraction from 232.4 points in the same month of last year.
BI spokesperson Ramdan Denny Prakoso pointed out in a statement released together with the data that the monthly decline “is better” than the previous month’s 11.6 percent drop.
