Indonesia's retail sector performance falls short of expectations

April 2025 Indonesia's national car sales plummeted 27.81 TP3T YoY to just 51,205 units; after malls and modern retail outlets went cold, with tenant after tenant closing down and even companies pulling out of the country.Retail sales were not as good as expected during Ramadan-Eid 2025 and businesses waited for customers for a long time. The chairman of the Indonesian Employers Association said that Indonesians' purchasing power has declined, making it difficult for economic growth to reach 5%.The chairman of the Indonesian Shopping Center Management Association said that Indonesia is in a low season, especially in the retail sector. This year's off-season is longer than last year's due to the earlier Ramadan and Eid al-Fitr. 2025 Ramadan- Eid al-Fitr saw less than 101 TP3T of year-on-year growth in traffic and sales. people's purchasing power has not recovered as well as the government's cutbacks in spending have affected the retail performance in the first quarter of 2025, and the retail sector is expected to grow by only single digits in the whole year of 2025. In addition to the economic situation, there are other factors constraining Indonesia's retail sector. A number of hypermarkets have permanently closed down due to changing consumer shopping trends and lifestyles, especially in large cities. The Xinguan epidemic has changed shopping habits, with people buying only what is necessary and close to home during the epidemic, and fewer regular bulk purchases at supermarkets in the past.