Indonesia Retail Sales Drop 11.6% in April Amid Post-Holiday Normalization

Indonesia's retail sales experienced a significant downturn in April 2026, with the Real Sales Index (IPR) dropping 11.6% from the previous month to 226.9. This contraction follows a period of increased consumer spending during the Ramadan and Eid al-Fitr holidays. The annual comparison also showed a decline, with IPR contracting 3.7% year-on-year.

According to Ramdan Denny Prakoso, Executive Director of BI's Communication Department, the monthly decrease was widespread across most retail groups. The sharpest declines were seen in "Other Goods" (-16.6% month-on-month), "Cultural and Recreational Goods" (-12.5%), and "Food, Beverages, and Tobacco" (-12.3%). Annually, "Food, Beverages, and Tobacco" saw a 3.8% decrease, "Information and Communication Equipment" fell 26.4%, and "Apparel" dropped 7.0%.

Looking ahead, retail sales are expected to contract by 3.2% year-on-year and 0.9% month-on-month in May 2026, reaching an index of 225. Despite this projected decline, the situation is expected to improve compared to April. This forecast is influenced by consumer demand during the upcoming holidays, including Ascension Day, Eid al-Adha, and Vesak.

Some retail segments are anticipated to show improvement in May. "Information and Communication Equipment" is projected to grow 2.2% month-on-month, and "Other Household Goods" is expected to increase by 2.0% month-on-month, indicating a potential recovery in specific sectors.