Indonesians’ love affair with gadgets looks set to be long-lasting, as a new survey reveals that sales of information and communications devices remain strong amid a slowing economy.

According to the April retail survey published by Bank Indonesia (BI) earlier this month, sales of such devices are estimated to have grown at an annual rate of 34.7 percent in May, the second-highest rate so far this year after January sales.

The May estimate is even higher than already strong sales growth of 33.6 percent seen in April and surpasses the 29.6 percent rate reported for the same period in 2015.

The strong sales estimate comes on the back of sluggish retail and domestic consumption, which traditionally makes up the biggest component of Indonesia’s gross domestic product (GDP).

Overall retail sales, however, have risen at a much slower pace than gadget sales. Overall retail stood at 10.4 percent in April and is expected to have risen to 11.3 percent only in May.

Kenta Institute economist Eric Sugandi attributed the device sales forecast to middle- and upper-class consumers, who were consistently purchasing new gadgets, such as cell phones, tablets and accessories.

He said the purchasing power of this consumer segment, though lower than last year, enabled them to continue spending. “The strengthening of the rupiah in April also helped, making the [imported] devices relatively cheap.”

Data from Bloomberg show that the rupiah appreciated by 0.4 percent against the US dollar throughout April.

Meanwhile, it turns out that low-class consumers played a role in the trend as well.

A report by research firm eMarketer — published in June — backs the BI survey results, predicting that 47.7 percent of people with mobile phones worldwide will have a smartphone this year and that that proportion will surpass 50 percent by 2017.

Indonesia will participate in the worldwide surge over the next few years, thanks to the popularity of low-end smartphones across the archipelago, which will push the number of active smartphone users to around 100 million — almost half the population.

Another study — conducted by research specialist MARS and local smartphone company Advan — has found that Indonesian customers tend to replace smartphones frequently, helping mobile manufacturers stay at the top of their game.

Some 56 percent of the respondents said they would change phones within the first two years if they saw another model that they wanted more, and 31 percent said they would change phones to get with the times.

The BI survey reveals that retailers are optimistic about sales during the next three months, as demand starts to climb ahead of the Idul Fitri festivities.

It will be the time for most Indonesians to receive a 13th salary package and holiday bonus as well, increasing their purchasing power.

The survey estimates that Bandung in West Java saw the highest retail sales growth rate in May with 23.4 percent on an annual basis, beating the capital Jakarta with 3.4 percent and Denpasar in Bali with 14.3 percent.

On the other hand, Banjarmasin in South Kalimantan and Manado in North Sulawesi are listed as the cities with the gloomiest sales estimates for May. Banjarmasin and Manado are estimated to post May retails sales 43.4 percent and 22.6 percent, respectively, below those recorded in May last year.

Asjaya Indosurya Securities analyst William Surya Wijaya said consumer confidence in Banjarmasin suffered a setback from falling coal prices and coal exports. “That affected their purchasing power.” (adt)

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