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F&B association expects 30% sales surge during Ramadhan
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A meat vendor at a traditional market sells beef ahead of the fasting month of Ramadan. (ANTARA/Agung Rajasa)
T
he Indonesian Food and Beverages Association (Gapmmi) expects the fasting month of Ramadan this year to see a 30 percent increase in sales from normal months.
"We are optimistic that a 30 percent sales increase can be achieved," Gapmmi chairman Adhi S. Lukman told The Jakarta Post at the Center for Strategic and International Studies (CSIS) in Jakarta.
Adhi attributed the optimism to the government’s recent decision not to increase fuel prices and therefore keep staple food prices relatively stable.
He added that most retailers had also responded positively, with some retailers even order additional stock since the beginning of May. In addition, the retail market is on the rise thanks partly to aggressive expansion from some mini market chains.
Adhi added that traditional retailers accounted for 70 percent of additional stock, leaving the rest of to modern retailers.
The association insisted there would be no significant rise in the prices of basic commodities since most retailers would focus on increasing their sales rather than their margin of profit.
"We want to give the best service to the customers during the holy month of Ramadan - it is a once-in-a-year chance. So why would we increase prices?" Adhi asked rhetorically.
In 2015, the fasting month of Ramadan failed to boost public consumption, data from the Central Statistics Agency (BPS) showing consumption growth flat at 4.9 percent quarter-on-quarter. In the first quarter of 2016, growth remained the same and the latest Bank Indonesia's Consumer Confidence Index was slightly down from 109.8 in March to 109 in April, as people anticipate price increases during Ramadan. (dmr)
