In April 2025, Indonesia's national car sales plunged 27.8% month-on-month to just 51,205 units; previously, shopping malls and modern retail stores were quiet, tenants closed one after another, and some companies even withdrew from Indonesia. During the 2025 Ramadan-Idul Fitri period, retail sales fell short of expectations, with merchants waiting a long time for customers. The Chairman of the Indonesian Employers Association stated that the purchasing power of Indonesians 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 slack season, especially in the retail sector. Due to the earlier arrival of Ramadan and Idul Fitri, this year's slack season is longer than last year. During the 2025 Ramadan-Idul Fitri period, foot traffic and sales grew by less than 10% year-on-year. Weak consumer purchasing power and government spending cuts affected retail performance in the first quarter of 2025, and the retail industry is expected to see only single-digit growth for the full year. Apart from economic conditions, other factors are also constraining Indonesia's retail sector. Some large supermarkets have permanently closed due to changes in consumer shopping trends and lifestyles, especially in major cities. The COVID-19 pandemic changed people's shopping habits; during the pandemic, people only bought essentials and shopped close to home, reducing the previous pattern of bulk purchases at supermarkets.
In April 2025, Indonesia's national car sales plunged 27.8% month-on-month to just 51,205 units; previously, shopping malls and modern retail stores were quiet, tenants closed one after another, and some companies even withdrew from Indonesia. During the 2025 Ramadan-Idul Fitri period, retail sales fell short of expectations, with merchants waiting a long time for customers. The Chairman of the Indonesian Employers Association stated that the purchasing power of Indonesians 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 slack season, especially in the retail sector. Due to the earlier arrival of Ramadan and Idul Fitri, this year's slack season is longer than last year. During the 2025 Ramadan-Idul Fitri period, foot traffic and sales grew by less than 10% year-on-year. Weak consumer purchasing power and government spending cuts affected retail performance in the first quarter of 2025, and the retail industry is expected to see only single-digit growth for the full year. Apart from economic conditions, other factors are also constraining Indonesia's retail sector. Some large supermarkets have permanently closed due to changes in consumer shopping trends and lifestyles, especially in major cities. The COVID-19 pandemic changed people's shopping habits; during the pandemic, people only bought essentials and shopped close to home, reducing the previous pattern of bulk purchases at supermarkets.