Ramadan To Boost Retail Sales: BI

Jakarta (Antara Bali) - A high consumption trend in the Ramadan fasting month boosted business optimism that retail sales, especially food group sales, would increase, according to a Bank Indonesia (BI) survey.

Executive Director of the Communications Department of BI Tirta Segara stated that the Sales Expectation Index of the survey of 700 retailers increased to 154.3 points for sales in June 2017, from 134.8 points in May 2017.

"The increase in the respondents' optimism is indicated in line with the increasing demand of the people during the Ramadan and Eid el-Fitr holidays," he noted in Jakarta on Wednesday.

The results of the survey conducted of the retail sales in March 2017 of 700 retailers in 10 cities indicate a growth in the gross domestic product in terms of private consumption.

If the estimate of the BI survey is true, then retail sales show a positive growth trend since the start of the first quarter of 2017. In April 2017, BI had estimated that the real sales index (IPR) will be 208.8, or grow 5.4 percent on an annual basis (year-on-year/yoy).

In the survey, food group sales are believed to be up 9.2 percent yoy. With regard to non-food groups, retail sales grew 0.1 percent yoy.

Not all groups of goods are showing growth. Most retailers expect sales growth for cultural and recreational goods' groups to slow to just 0.5 percent yoy instead of a growth of 3.5 percent yoy in March 2017.

Meanwhile, in March 2017, the IPR grew 4.2 percent yoy, driven by an increase in retail sales of the food group, which grew by 7.1 percent yoy.

Meanwhile, retail sales of the non-food group slowed since it grew only 0.3 percent yoy as compared to 1.8 percent in February 2017 yoy. (WDY)