Indonesia’s retail sales rose 1.1% year-on-year in July 2026, breaking a three-month streak of declines, supported by government measures designed to shield households from persistent cost pressures. The recovery was driven primarily by stronger sales of food, beverages and tobacco (up 2.4% vs a 3.6% drop in June), as well as clothing (up 2.8% vs a 3.1% decline previously). By contrast, growth in automotive parts sales slowed sharply to 5.1% from 18.8% in June.
Spending remained weak in several categories, with fuel sales down 7.7% (vs -1.5% in June), information and communication equipment declining 20.6% (vs -20.2%), and recreational goods falling 6.7% (vs -6.2%). Household equipment sales also retreated, dropping 4.9% after a 2.8% increase in the prior month.
On a month-on-month basis, retail sales inched down 0.1%, reversing a 0.7% gain in June. Looking ahead, retail activity may strengthen further in August as government support measures remain in place, but elevated inflationary pressures are expected to limit the pace of the recovery.
