Retail businesses are hoping to boost their sales ahead of Idul Fitri, which will likely be celebrated on Friday and Saturday.

On Monday, Indonesian Retailer Association (Aprindo) secretary-general Solihin said Idul Fitri would hopefully boost the retail sales of fast moving consumer goods by about 12 to 15 percent over the previous month.

Solihin added that the association was also upbeat about fashion retail sales, which were expected to increase by 20 percent.

According to Aprindo chairman Roy Nicholas Mandey, as reported by kontan.co.id, overall retail sales during Ramadan and Idul Fitri would likely increase by around 15 to 20 percent over the previous monthly average.

Solihin said retailers were optimistic about an increase in sales.

“We hope that we will achieve the levels of sales growth because the government has decided to provide Idul Fitri bonuses and 13th month salaries to civil servants and state apparatuses this year,” he told The Jakarta Post.

“The payments would hopefully boost the public’s purchasing power during the Idul Fitri holidays.”

This year, the government allocated Rp 35.76 trillion (US$2.56 billion) for holiday bonuses and 13th month salaries, up by 68.9 percent from last year.

The holiday bonuses were handed out two weeks before Idul Fitri, which included monthly base pension funds and allowances, while the 13th month salaries are expected to be distributed in July, comprising monthly base salaries, a general allowance, family allowance, job position allowance and work performance allowance.

Furthermore, Solihin said the public had increased their purchasing power.

Although he declined to specify any figures, Solihin said many retail stores have seen an increase in the number of shoppers this holiday season.

Private company employee Lucky, 28, for example, said he preferred to shop at retail stores this holiday season.

Despite not celebrating Idul Fitri, he was tempted to buy goods from stores in shopping malls like Grand Indonesia in Central Jakarta because he had received his holiday bonus.

“I’ve received my holiday bonus so I am tempted to buy discounted goods whenever I visit a mall this holiday season,” he said.

This year’s Idul Fitri period is different from last year’s when Aprindo recorded an increase of only 5 to 6 percent in retail sales due to the country’s economic slowdown that affected the retail industry.

Last year also saw several retailers closing stores.

For example, multi-brand lifestyle company PT Mitra Adi Perkasa Tbk — which operates some department stores, fashion as well as food and beverage outlets across Indonesia — closed down the Lotus and Debenhams department stores in Central and South Jakarta, respectively.

Publicly listed retail giant PT Matahari Department Store also closed several of its stores in Jakarta and Mataram in Lombok because of a sales slump.

Slow growth was not only experienced by fashion retailers, but by supermarkets as well.

Publicly listed retailer PT Ramayana Lestari Sentosa, for example, closed eight of its supermarket branches in Banjarmasin in South Kalimantan, Bulukumba in South Sulawesi and Bogor in West Java last August and converted them into fashion retail stores.

Meanwhile, PT Matahari Putra Prima Tbk, which operates Hypermart, closed two of its stores last July due to its losses in the first quarter of last year.

PT Modern Internasional also closed down all of its 7-Eleven outlets in the country due to tight competition as well as the alcohol ban in minimarkets. (ris)

Popular

RI, Australia strengthen partnership on taxing crypto assets

Analysis: Indonesia denies normalization with Israel to enter OECD

Citroen to produce electric cars in Indonesia