Indonesian Retail Sales Show Strong Growth in October 2025

Pre-Christmas Spending Boosts Retail Sector

Bank Indonesia reported a significant increase in retail sales for October 2025, with the Retail Sales Index growing by 4.3% year-on-year, surpassing the previous month's growth of 3.7%. This surge was primarily driven by increased consumer spending across various categories, particularly in food, beverages, and tobacco products, as well as cultural goods and household items. The month-on-month growth for October 2025 stood at 0.6%, indicating a steady upward trend in consumer expenditure.

Key Drivers of Retail Growth

1. Pre-Holiday Spending: The approaching Christmas season was a major factor in the increased retail sales, as consumers ramped up their purchases in anticipation of the festivities.
2. Diverse Product Categories: The growth was not limited to a single category but was spread across various sectors, including food, beverages, cultural goods, and household items.
3. Economic Resilience: The overall increase in retail sales is a positive indicator of Indonesia's economic resilience and consumer confidence.

Bank Indonesia's Observations

According to Ramdan Denny Prakoso, Executive Director of Bank Indonesia's Communications Department, the growth in retail sales was driven by the majority of product categories seeing increased demand. He highlighted that the preparation for the National Religious Holidays (HBKN), particularly Christmas, played a significant role in this growth. The central bank's data provides valuable insights into consumer behavior and economic trends, helping to inform monetary policy decisions.