FX.co ★ Indonesia Retail Sales Growth at 5-Month High

Indonesia’s retail sales rose 1.3% year-on-year in August 2026, up from a 1.1% increase in July, marking a second consecutive month of growth and the fastest expansion since March. The improvement was underpinned by ongoing government measures aimed at cushioning households from persistent cost pressures.

By category, growth in sales of food, beverages, and tobacco strengthened to 2.6% from 2.4% in the previous month. Automotive parts sales also continued to grow, though at a slower pace (3.9% vs 5.1% in July). In contrast, clothing sales recorded a sharp contraction, dropping 12.4% after a 2.8% increase in July.

Declines also persisted in several segments: fuel (-5.7% vs -7.7% in July), information and communication equipment (-10.9% vs -20.6%), recreational goods (-0.3% vs -6.7%), and household equipment (-5.2% vs -4.9%).

On a monthly basis, retail sales climbed 0.8% in August, rebounding from a 0.1% decline in July and posting the strongest increase in five months. Looking ahead, retail activity is expected to continue expanding in September, although the pace of growth is projected to remain broadly stable amid elevated price pressures.