Bank Indonesia (BI) decided to relaxes the macro-prudential intermediation and loan to value (LTV) ratios to strengthening banking intermediary function - Photo: Privacy

JAKARTA (TheInsiderStories) Retail sales in January and April 2019 are estimated to slow down based on the the Retail Sales Survey released by Bank Indonesia.

According to the survey, the Sales Expectation Index (SEI) in January 2019 reached 156, lower than the previous month which reached 165.9. This is due to the year-end seasonal factor of Christmas and New Year celebrations.

The decline is also predicted to occur in the SEI for the next six months which also declined to 141.7 from 143.8 in the previous month.

The decline in sales expectations was also in line with the estimated price increase in January 2019 which was higher than the previous month. This is indicated in the General Price Expectation Index for the next three months amounting to 163.9, up from 159.3 in the previous month.

Respondents said that the price increase was in line with the plan for price adjustments made by producers at the beginning of the year. Pressures on rising prices are expected to decrease in April 2019, as indicated by the general price export index in the next six months of 172.4, down from 173.3 in the previous month.

Meanwhile, real sales in October 2018 were recorded at 208.1, growing 2.9 percent in annual basis. Retail sales growth occurred in the clothing sub-group and motor vehicle fuel group.

Retail sales are estimated to continue to grow positively in November 2018, reflected in the real sales index which grew 3.4 percent compared to last year.

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