Magazines Archives - 2010 January

New report predicts Indonesia’s retail revenues to double by 2014
Story 11 - News

Indonesia’s retail sector is projected to grow to US$82 billion in the next four years, nearly double current estimates of retail sales of more than US$42 billion last year.

According to a recent report released by Business Monitor International (BMI), the growing per capita
income and progress of the organised retail sector are fuelling the growth in retail sales, in addition to the country’s “strong underlying economic growth [and] an enormous and expanding population”.

Last year, Indonesia’s GDP was estimated at US$516.84 billion. BMI’s predictions stated that the country’s GDP is expected to grow an average 4.8% annually, while GDP per capita is anticipating an 87% growth by 2014, to reach US$4,078.

“The growth in the overall retail market will be driven, in large part, by the expansion of the organised retail market,” the report said. “Sales through these more modern and sophisticated outlets, which in 2009 accounted for an estimated 18.8% of the market, will nearly double to US$16.30 billion by
2014,” it continued.

Meanwhile, the budding mass grocery retail sector is expected to see “substantial growth”, with sales in the category looking to grow by about 95% to US$10.5 billion, while sales in consumer electronics are also predicted to grow by 63.1% to US$10.47 billion by 2014.

The report also projected that retail sales in Asia last year would reach US$2.26 trillion, with China and India continuing to dominate the market over the next four years with over 90% share of regional retail sales, while sales in the region is expected to grow an average 12% annually.

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