Retail Sales Contracted in July 2021

Bank Indonesia (BI) reported a contraction in retail sales in July 2021. This is reflected in the Real Retail Sales Index (IPR), which stood at 188.5 in July 2021, down 2.9% year-on-year (yoy) from 194.1 in the same period of the previous year.

Indonesia's IPR had shown positive growth since April 2021, although the growth rate slowed. The IPR grew by 15.6% (yoy) in April 2021. This figure decreased to 14.7% (yoy) in May 2021 and 2.5% (yoy) in June 2021.

Compared to the previous month, the IPR in July 2021 contracted by 5% month-on-month (mom) from 198.5 points. However, the monthly contraction in the IPR in July 2021 was better than in June 2021, which was 12.8% (mom).

The central bank projected the IPR to improve to 196.5 in August 2021, growing by 4.3% compared to the previous month. Most groups experienced positive growth, particularly in the spare parts and accessories group (24.9%) and motor vehicle fuel (13.4%).

Meanwhile, year-on-year, retail sales are also expected to improve, although still contracting by 0.1%. This improvement is in line with the easing of activity in several regions.