Below is a list with tagged columns and company profiles.

Today's Headlines Purchasing Power

  • Food & Beverage Industry of Indonesia Expects Good Sales During Islamic Festivities

    Food & Beverage Industry of Indonesia Expects Good Sales During Islamic Festivities

    Stakeholders in Indonesia's food and beverage industry expect to see a 15 percent increase in sales during the Ramadan month and Idul Fitri celebrations (compared to normal conditions). Although the Ramadan is Muslims' fasting month, it is also a period when household consumption tends to rise sharply in Indonesia, specifically spending on food and drinks as well as clothes, bags and shoes grows significantly.

    Read more ›

  • Indonesia's Electronics Industry Plagued by Weak Purchasing Power

    Indonesia's Electronics Industry Plagued by Weak Purchasing Power

    Although a modest improvement is detected in the second half of 2017, Indonesian electronics manufacturers say that bleak consumer purchasing power poses a major challenge and therefore urge the government to implement policies that would strengthen purchasing power in Southeast Asia's largest economy.

    Read more ›

  • Do Indonesians Now Really Prefer to Save Rather than Consume?

    Do Indonesians Now Really Prefer to Save Rather than Consume?

    Indonesia's purchasing power may not be as weak as initially assumed in the first half of 2017. It could be that consumers and businesses now actually prefer to save their funds on banks than to spend and invest. Based on data from the Financial Services Authority (OJK) third-party funds in Indonesia's banking sector (saving and deposit accounts) expanded 11.2 percent year-on-year (y/y) to IDR 5,012.5 trillion (approx. USD $3,775.4 billion) in May 2017.

    Read more ›

  • Retail Sales Indonesia Expected to Remain Bleak in Remainder 2017

    Retail Sales Indonesia Expected to Remain Bleak in Remainder 2017

    Bleak retail sales in Indonesia are expected to continue in the second half of 2017 amid weak consumer purchasing power. Yongky Susilo, Executive Director at Retailer Services Nielsen Indonesia, expects the nation's retail sales growth to be be 6 percent year-on-year (y/y), tops. Normally, the growth pace of retail sales in Southeast Asia's largest economy averages 10 - 11 percent (y/y).

    Read more ›

  • Economic Update Indonesia: Layoffs & Weak Purchasing Power

    Economic Update Indonesia: Layoffs & Weak Purchasing Power

    Normally the Ramadan month and Idul Fitri holiday (the celebration that marks the end of the Islamic fasting month) trigger an acceleration of economic activity as people consume more products (such as food and clothes), while the exodus of people from the cities to the rural areas during the week-long Idul Fitri (where they will spend a short holiday) causes a massive flow of money from the urban areas into the regional economies.

    Read more ›

  • Astra's Earnings Undermined by Indonesia's Bleak Purchasing Power

    Astra's Earnings Undermined by Indonesia's Bleak Purchasing Power

    Car and motorcycle sales of the Astra Group, one of Indonesia's largest diversified conglomerates, still show no positive signs in the first half of 2017. Fransiscus Soerjopranoto, Executive General Manager at Toyota Astra Motor, said this Astra unit's retail sales fell 0.8 percent year-on-year (y/y) to 186,365 units in the first six months of 2017. This bleak performance is attributed to Indonesians' weaker consumer purchasing power.

    Read more ›

  • Q1-2017 GDP Growth Indonesia Expected to Remain Below 5%

    Economic Growth Indonesia in Q1-2017 Expected to Remain Below 5%

    Despite the improving export performance (supported by improving commodity prices), it may be difficult for Indonesia to deliver +5 percent year-on-year (y/y) gross domestic product (GDP) growth in the first quarter of 2017. Main reason is subdued consumer purchasing power due to higher electricity tariffs in Southeast Asia's largest economy. Therefore, economic growth of Indonesia is expected to be rather similar to the 4.92 percent (y/y) growth pace recorded in Q1-2016.

    Read more ›

  • Motorcycle Industry Indonesia Yet to See Rebound in Sales, Why?

    Motorcycle Industry Indonesia Yet to See Rebound in Sales, Why?

    While car sales are showing a rebound in Indonesia, motorcycle sales continue to decline. Based on the latest data from the Indonesian Motorcycle Industry Association (AISI), motorcycle sales in Southeast Asia's largest economy fell 15.9 percent year-on-year (y/y) to 473,896 units in March 2017 from 563,341 units in the same month one year earlier. AISI Chairman Sigit Kumala says Indonesian consumers continue to postpone the purchase of a motorcycle amid weak consumer purchasing power.

    Read more ›

  • Widodo: Safeguard the Strength of Indonesia's Household Consumption

    Widodo: Safeguard the Strength of Indonesia's Household Consumption

    Indonesian President Joko Widodo urged his cabinet members to guard - or even better: to improve - household consumption in Indonesia as this would have an immediate impact on Indonesia's overall macroeconomic growth. Over the past five years, the nation's household consumption accounted for about 56 percent of Indonesia's gross domestic product (GDP).

    Read more ›

  • Automotive Sector: Bright Future for Car Sales in Indonesia?

    Automotive Sector: Bright Future for Car Sales in Indonesia?

    Passenger car sales in Indonesia are estimated to rise 11.5 percent per year in the 2017-2021 period supported by Indonesia's expanding middle class. This conclusion originates from research that was conducted by London-based BMI Research. Meanwhile, business consulting firm Frost and Sullivan sees Indonesian car sales rise 5 percent (y/y) to 1.11 million vehicles in 2017 supported by the popular low cost green cars and multipurpose vehicles.

    Read more ›

Latest Columns Purchasing Power

  • A Quick Look at Indonesia's Largest Listed Retail Businesses

    A Quick Look at Indonesia's Largest Listed Retail Businesses

    Indonesian retail businesses are optimistic that their performance will improve in 2016 on the back of rising purchasing power amid the government's decision to cut energy tariffs (fuel and electricity) and its plan to raise non-taxable income by 50 percent. These moves mean that Indonesian consumers (particularly in the lower middle class segment) should have more money to spend. Tutum Rahanta, Deputy Chairman of the Indonesian Retailers Association (Aprindo), says retail business can grow by 12 - 15 percent (y/y) in 2016, considerably higher than the 7 - 8 percent (y/y) growth pace realized last year.

    Read more ›

  • Unilever Indonesia to Rebound along with the Overall Economy?

    Unilever Indonesia to Rebound along with the Overall Economy?

    In 2015 Unilever Indonesia's net profit declined 1.2 percent (y/y) to IDR 5.85 trillion (approx. USD $443 million) due to weakened purchasing power of Indonesian consumers amid the economic slowdown. Last year Indonesia's GDP growth touched the six-year low of 4.79 percent (y/y). This year, however, economic growth is estimated to accelerate beyond the 5.0 percent (y/y) mark. Unilever Indonesia is a leading consumer goods producer in Indonesia that is mainly focused on home & personal care products as well as foods & refreshment products. How about its performance in 2016?

    Read more ›

  • Car, Motorcycle & Cement Sales: Assessing Indonesia's Purchasing Power

    Car, Motorcycle & Cement Sales: Assessing Indonesia's Purchasing Power

    To assess Indonesia's purchasing power and consumer confidence it is always useful to take a look at car and motorcycle sales because when people are confident about their financial situation and have enough money to spend then they tend to buy cars and motorcycles (motorcycles are particularly popular among Indonesia's huge middle to lower-middle class segment). Meanwhile, cement sales inform about property and infrastructure development. Property development is also closely related to purchasing power and consumer confidence because property development grows when people's demand for property rises.

    Read more ›

  • Outlook Indonesia's Car Sales in 2016: Optimistic or Pessimistic?

    Outlook Indonesia's Car Sales in 2016: Optimistic or Pessimistic?

    Whereas the Indonesian Automotive Industry Association (Gaikindo), expects Indonesia's car sales to rise five percent (y/y) in 2016 on the back of improving economic conditions, US-based consulting firm Frost & Sullivan expects to see a 4.3 percent decline in the country's car sales this year as continued rupiah depreciation and persistently low commodity prices undermine Indonesians' purchasing power.

    Read more ›

  • Indonesia's Car & Motorcycle Sales Fell Sharply in 2015

    Indonesia's Car & Motorcycle Sales Fell Sharply in 2015

    Both car sales and motorcycle sales declined in 2015 in Indonesia. Primary reason for this decline was people's weaker purchasing power amid the slowing economy and persistently low commodity prices. Indonesia's GDP growth is estimated to have fallen to 4.7 percent year-on-year (y/y), the slowest growth pace since 2009. Meanwhile, amid the sluggish global economy (especially China's slowdown) and falling oil prices, Indonesia gains relatively little from its commodity exports.

    Read more ›

  • Performance of Indonesia's Astra International to Improve in 2016?

    Performance of Indonesia's Astra International to Improve in 2016?

    The performance of Astra International, one of Indonesia's leading diversified conglomerates (but particularly known for being the dominant force in the country's automotive industry), is expected to improve next year on the arrival of new car models, estimated accelerated economic growth and its rivals' stagnating production capacity expansion. As such, Astra International should be able to increase its market share and feel less need to offer its cars to customers at discounted rates.

    Read more ›

  • Ace Hardware Indonesia Plagued by Weak Rupiah & Purchasing Power

    Ace Hardware Indonesia Plagued by Weak Rupiah & Purchasing Power

    Ace Hardware Indonesia, one of Indonesia's leading retail companies that is engaged in the markets of home improvement and lifestyle products, is expected to show modest (single-digit) growth in 2016. Same store sales growth is estimated to grow in the range of 8-10 percent year-on-year (y/y). This modest performance is caused by weak purchasing power in Indonesia amid sluggish economic growth and due to the fragile rupiah (against the US dollar).

    Read more ›

  • Analyst Opinion: Indonesia Should Focus on Boosting Purchasing Power

    Analyst Opinion: Indonesia Should Focus on Boosting Purchasing Power

    An Indonesian analyst says the Indonesian government needs to increase efforts to boost people's purchasing power in order to achieve the government's economic growth target of 5.3 percent in 2016. Household consumption in Indonesia accounts for about 55 percent of the nation's total gross domestic product (GDP) growth. As such, if purchasing power continues to weaken, then the economic slowdown returns. The analyst suggests the government should consider to cut personal and corporate income taxes, delay the electricity tariff hike for 900 VA households, and lower fuel prices.

    Read more ›

  • Automotive Market Indonesia: Car Sales to Rebound in 2016

    Automotive Market Indonesia: Car Sales to Rebound in 2016

    Indonesian car sales may rise up to ten percent (y/y) to 1.1 million vehicles in 2016, from an estimated 1 million this year, amid accelerating economic growth in Indonesia. Car sales in 2015 have been disappointing, declining 18 percent (y/y) to 853,008 units in the first ten months of 2015, due to people's weakening purchasing power. Sales in 2016 are expected to be boosted by sales of the low-cost green car (LCGC), which was introduced on the Indonesian market in late-2013, and the crossover utility vehicle, a car that has gained popularity recently.

    Read more ›

  • Indonesian Government Revises Luxury Goods Tax to Boost Consumption

    Indonesian Government Revises Luxury Goods Tax to Boost Consumption

    In an attempt to boost the sluggish domestic economy by persuading Indonesian consumers to spend more, the central government of Indonesia will exempt several products from the luxury goods sales tax. By law, Indonesia has a tax (ranging between 10 and 50 percent) on goods that are categorized as luxury goods. These products include household items such as televisions, electronics, furniture, refrigerators, washing machines, water heaters as well as cars, motorcycles and property.

    Read more ›

No business profiles with this tag