With the world’s fourth-largest population, a growing middle class, and GDP expanding at an impressive 5%, Indonesia is one of the world’s most attractive retail markets. The country also has a competitive ecommerce market, which will account for 26.5% of total retail sales in 2024. During this year’s Ramadan, the Muslim holy period and a busy shopping season, survey data suggests that consumers are cautiously optimistic.

Consumer confidence in Indonesia inches up

The consumer confidence index in Indonesia rose from a score of 113 in October 2021 to 124 in October 2023, according to Kantar Worldpanel. In the same period, the inflation rate steadily declined, dipping to 2.56% in October 2023 after peaking at 5.71% YoY in October 2022. Accordingly, we predict 4.0% retail sales growth in 2024, after a lackadaisical 1.3% rate in 2023.