Entrepreneurs Rally! Mall Boss Says Indonesians Will Be Spending Heavily

Jakarta, CNBC Indonesia - The Indonesian Shopping Mall Management Association (APPBI) predicts that the peak of retail sales during Ramadan 2026 will occur in the second week of March, just before the public undertakes Lebaran mudik. APPBI President Alphonzus Widjaja said the surge in transactions usually happens when people begin preparing for the holiday. ‘It is expected that the peak of sales during Ramadan 2026 will occur in the second week of March, before people undertake the Lebaran mudik,’ Alphonzus told CNBC Indonesia, Thursday (5/3/2026). In addition to higher transactions, APPBI also foresees a rise in the average visitation rate to shopping centres during Ramadan through Idulfitri this year compared with last year. ‘It is expected that the average visitation rate to Shopping Centres ahead of and during Ramadan and Idulfitri will increase by around 10%-15% compared with last year,’ he said. Meanwhile, the surge in visits to shopping centres during the Lebaran holidays is predicted to occur on the second day of Idulfitri, after people finish celebrating the holiday and visiting relatives. ‘The peak of visits to Shopping Centres during the Lebaran holidays will occur on the second day of Idulfitri after people celebrate and visit family, relatives and others,’ he explained. According to Alphonzus, during Ramadan nearly all product categories will experience higher sales. However, shopping patterns will shift ahead of and after Idulfitri. ‘Nearly all product categories and goods will experience higher sales during Ramadan. Shopping patterns will shift ahead of Idulfitri and during the Idulfitri holidays, when people are inclined to buy food and beverages and entertainment,’ he said. He noted that Ramadan and Idulfitri are the most important periods for Indonesia’s retail industry because they represent the peak sales season each year. ‘In the current context of national economic growth still not being optimal, all sales momentum will be utilised to the maximum by the retail industry to boost performance, especially during Ramadan and Idulfitri, which are the peak sales seasons for retail in Indonesia,’ said Alphonzus. He added that the retail sector’s performance in the first quarter of 2026 will be critical for overall annual performance. ‘The first quarter of 2026 will be very important for the retail industry as it opens the year and will influence performance for the rest of the year,’ he said. Several early-year momentum drivers are also seen as capable of boosting consumer spending, ranging from New Year, minimum wage increases, the Lunar New Year, bonuses, Ramadan, THR (Tunjangan Hari Raya), and Idulfitri. ‘In this first quarter of 2026 there are several supporting factors that could drive retail performance, including New Year, minimum wage increases, the Lunar New Year, bonuses, Ramadan, THR, and Idulfitri,’ he explained. To maximise this momentum, shopping centres will also host a variety of entertainment events and thematic decorations to attract visitors. ‘As is typical to welcome and enliven the celebrations, Shopping Centres will organise a range of events, attractions, activities wrapped in arts, music, culture, entertainment and more to attract visitors to Shopping Centres,’ Alphonzus said. ‘Visitors will gain unique and memorable experiences at the Shopping Centres with beautiful decorations not found in everyday conditions and circumstances,’ he added. In addition, various promotional programmes will be prepared to boost transactions during Ramadan through to Lebaran. ‘Shopping centres together with retailers will also prepare various very attractive shopping promotions to meet visitors’ needs ahead of the festive season,’ he said. Furthermore, Alphonzus added, several government stimuli such as discounts on transport tariffs, toll discounts, and social aid are expected to help sustain purchasing power among the public during Ramadan and Idulfitri. ‘The stimulus and incentives prepared by the government, including transport tariff discounts, toll discounts, social aid and so on, are expected to boost purchasing power, especially for the lower middle class during Ramadan and Idulfitri,’ he concluded. (dce)