APPBI Confident Retail Performance in Q1 Positive Supported by Eid Momentum
The performance of the retail industry in the first quarter of this year is estimated to be quite good, given that Ramadan and Eid al-Fitr represent the peak sales season for retail in Indonesia, with a significant contribution to the overall performance achievement for the entire year 2026,” said APPBI General Chairman Alphonzus Widjaja when contacted by ANTARA in Jakarta on Sunday.
Alphonzus added that the first quarter period in 2026 is very important for the industry as it will serve as an opening moment that influences performance throughout the year.
Several seasonal factors are the main drivers of retail performance during this period. In addition to early-year momentum such as New Year and Chinese New Year celebrations, there is also a minimum wage increase that boosts purchasing power as well as the disbursement of private sector employee bonuses.
Entering March, consumption activities further increase with the arrival of Ramadan, followed by the disbursement of holiday allowances (THR) and Eid al-Fitr celebrations.
On the other hand, government policies through various stimulus and incentive programmes are seen to further strengthen consumption.
Discounts on transportation fares, toll road tariff reductions, and the distribution of social assistance are expected to maintain and increase people’s purchasing power, especially for lower and middle-income groups, during Ramadan up to Eid al-Fitr.
Alphonzus noted that overall, several retail performance indicators show a continuously improving trend from the New Year momentum to Ramadan.
“It is estimated that this positive trend will continue to increase up to the current Eid al-Fitr holiday,” he said.
Alphonzus stated that during Ramadan, almost all product categories experienced sales increases. Leading up to and during the Eid al-Fitr holiday, people’s shopping patterns tend to shift to food and beverage products as well as entertainment needs, in line with increased family recreational activities.
“A significant increase in visits to shopping centres will occur on the second day of Eid al-Fitr, which is today, after on the first day people celebrate Eid al-Fitr and engage in social visits with family, relatives, and others,” said Alphonzus.
Overall, APPBI estimates that the level of visits to shopping centres during the Ramadan and Eid al-Fitr period will grow by double digits, around 10-15 percent, compared to the same period last year.