Indonesia Retail Report Q3 2016 - New Market Report

From: Fast Market Research, Inc.
Published: Wed Jul 20 2016

Despite the multiple headwinds that have faced Indonesia's economy in recent quarters, we believe that the stabilisation of the rupiah and the central bank's accommodative monetary policy stance should be positive news for consumer confidence in the highly prospective Indonesian market. However, the country's economic recovery largely hinges on increased government spending levels, which could be compromised by the deteriorating country's fiscal position.

Key Views A nd Developments

Headline household spending growth will average 11.5% a year between 2016 and 2020. Spending on communications will enjoy the strongest growth rate, averaging 13.1% a year during our forecast period.

In May 2016 the government passed an amendment allowing majority foreign-ownership in a number of sectors, including retail. However, foreign ownership in e-commerce companies remains restricted to a maximum share of 49%.

Full Report Details at

US low-cost clothing brand Old Navy has entered Indonesia, opening its first outlet in Central Park Mall, Jakarta. Part of Gap Inc, Old Navy collaborates with local fimr Armaan Retail Indonesia, according to Retail News Asia.

In April 2016 one of the largest Indonesian online marketplaces said it would seek another round of investment in 2016. It expects to raise at least USD75.7mn to fund the construction of six new warehouses and 200 fulfilment centres outside Jakarta.

In the same month Chinese e-commerce giant Alibaba bought South East Asia's leading online marketplace Lazada for around 1USDbn.

According to a survey by the Bank of Indonesia, the country's retail sales grew by 22.4% y-o-y in April 2016. Growth was up from 19.7% y-o-y in March 2016.

The Indonesia Retail Report has been researched at source and features BMI Research's independent assessment and forecasts for the retail sector. The report examines key drivers of retail sales growth and future prospects, including consumer spending and private sector investment.

BMI's Indonesia Retail Report also examines the level of development and potential for growth of the retail sector, the commercial initiatives of major players, changing consumer demographics that influence demand and the regulatory environment. Key sub-sectors include mass grocery retail, autos, over-the-counter pharmaceuticals, computers and consumer electronics.

Key Benefits
Benchmark BMI's independent retail industry forecasts for Indonesia to test other views - a key input for successful budgeting and strategic business planning in the Indonesian retail market.
Target business opportunities and risks in Indonesia through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.


BMI Industry View

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Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
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Contact Phone: 1-413-485-7001

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