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Jakarta Post

Consumer shift behind spending slowdown: Analysts

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Mon, November 25, 2019   /  01:36 pm
The Jakarta Post Image
Shopping pattern: People choose outfits that are available during launching of Ikat Indonesia at The Goods Dept. on Friday, March 1, 2019 at Pacific Place, South Jakarta. (JP/Ni Nyoman Wira)

As consumer spending growth cools, retail sales slump and car sales slow, many have questioned if domestic consumption is in a decline but economists and businesspeople have expressed confidence that the trend is just a reflection of a shift in customer behavior. University of Indonesia economist Faisal Basri said the softening consumer spending growth merely showed that demand was shifting to other goods. “Clothes and shoes sales may have been [growing] more slowly this year, but people are spending their money more on phone credit or gadgets,” he said during a discussion in Jakarta on Wednesday. Statistics Indonesia (BPS) data show the transportation and communication component, which is a segment of consumer spending, grew 4.35 percent year-on-year (yoy) in the third quarter compared with 4.69 percent in the second quarter. Meanwhile, clothes and footwear growth s...