Retail sales from January to August 2017 decreased despite improved consumer confidence. This is evident from Bank Indonesia (BI)'s retail sales survey data, which shows that the Real Retail Sales Index (IPR) in August 2017 fell by 7.29 percent to 202.1 compared to its December 2016 position of 218. Meanwhile, the Consumer Confidence Index (IKK) in August 2017 rose by 5.63 percent to 121.9 from the end-of-year level of 115.4.
The largest decrease in retail sales was contributed by the information equipment sector, which fell by 19.8 percent, household appliances at 18.2 percent, and spare parts at 4.7 percent. Sectors experiencing an increase were fuel, and cultural and recreational goods, at 1.1 percent and 0.5 percent respectively.
In September 2017, the real retail sales index is projected to grow only by 0.1 percent to 120.3 from the previous month due to persistent pressure. This is reflected in the general price expectation for the next 3 months at 145, higher than July's 135.5.
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