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02 May 2019, EMIS Insights Industry Report Extract

Indonesia Consumer Goods and Retail Sector 2019/2020

Sector Overview

Indonesia’s retail sector plays an important role in the country’s economy. It generated 10% of the gross domestic product (GDP) and provided employment to nearly a fifth of the country’s workforce in 2018. Household consumption has traditionally accounted for over half of the GDP, highlighting the strong fundamentals of the retail sector. The aggregate food and beverage expenditures amounted to IDR 3,238tn in 2018.

Sector Snapshot

The consumption expenditure of Indonesian households grew by 8.4% y/y to IDR 8,270tn in 2018. Indonesians spent IDR 3,238tn on buying food and beverages in 2018, making it the largest spending category. Transportation and communication costs came second, with IDR 1,910tn in spending, closely followed by household equipment with IDR 1,059tn. Indonesians spend over two-thirds of their annual budgets on essential goods such as food, transportation, housing and clothing.

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