FX.co ★ Indonesia Retail Sales Rebound in May

In May 2025, Indonesia witnessed a 1.9% year-on-year growth in retail sales, marking a rebound from a 0.3% decline in April, which had been the first annual drop since April 2024. This recovery was largely fueled by a notable increase in the sales of food, beverages, and tobacco, which increased by 4.0% compared to 1.2% in April, alongside an uptick in cultural and recreational goods, which saw sales rise by 4.7% compared to 3.6% previously. Conversely, growth in sales for automotive parts and accessories slowed to 1.6% from 8.7%, and fuel sales growth also decelerated to 5.3% from 8.3%. Looking forward, retail sales for June are projected to increase by 2.0%, spurred by rising demand for fuel, automotive parts and accessories, and clothing. However, on a monthly basis, retail sales in May declined by 1.3%, an improvement from the steeper 5.1% drop in April, partly attributed to increased consumer spending during several holidays in May.