Indonesia Retail

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Chapter | Retail & E-Commerce from The Report: Indonesia 2017

Now comprising a mix of traditional markets and modern retail outlets, Indonesia’s retail sector has been swiftly evolving since the late 1990s, when the country’s economic development began to accelerate. Gross national income per capita at current prices grew from $570 1999 to $3440 in 2015, more than a 500% increase over 15-year period, according to World Bank data. Fuelled by this economic...

The Indonesian government is in the midst of pursuing an ambitious new growth strategy, emphasizing investment over domestic consumption as a primary growth driver in the wake of depressed commodity prices, lagging household consumption and lower-than-anticipated government revenues.

How would you describe the current regulatory environment for the retail sector?

Although Indonesia’s retail sector was officially added to the government’s negative investment list in April 2014, thereby prohibiting foreign ownership of smallscale enterprises, foreign investment in large-scale operations – particularly in the fast-moving consumer goods (FMCG) segment – has seen a sharp rise in recent years. Most recently, global equity investor Warburg...

E-commerce in Indonesia is expanding as retailers capitalise on a rising middle class, growing demand outside of Jakarta and a tech-savvy population embracing new sales and payment platforms. “It is important to start adopting social media as a stable part of our business strategy,” Henri Honoris, president-director of Modern Internasional, a retail operator and owner of the 7...

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