March 30, 2025 | 08:13 pm
TEMPO.CO, Jakarta - The Center of Reform on Economics (CORE) has revealed several indications of subdued household consumption ahead of Eid 2025. In its report, CORE Indonesia noted that the consecutive deflation was not only caused by the discount on electricity tariffs as mentioned by the government.
The report titled CORE Insight: Beware of Anomalies in Consumption Ahead of Eid 2025' noted the early year deflation as an indicator of anomalies in household consumption. 'The sluggishness in Ramadan and ahead of this celebration is an anomaly that illustrates the disorder in Indonesia's domestic economy,' the CORE report published on March 26, 2025, stated.
BPS mentioned that the biggest factor contributing to deflation also came from the group of expenditure on housing, water, electricity, and household fuels, triggered by a 50 percent discount incentive on electricity tariffs from January to February 2025.
However, CORE evaluated that the deflation in February 2025 did not only occur in that expenditure group. Deflation also occurred in the group of food, beverages, and tobacco, with a share of minus 0.12 percent on a monthly basis.
'However, in the years preceding Ramadan, the group of food, beverages, and tobacco always contributed to inflation.'
Bank Indonesia also noted that the Real Sales Index (RSI) in February 2025 is estimated to decline by 0.5 percent year on year. According to the CORE report, the weakening growth of several retail sales reinforces the results of the RSI survey.
In line with the CORE report, entrepreneurs also confirmed the weakening purchasing power ahead of Eid 2025. The Chair of the Indonesian Shopping Center Management Association (APPBI), Alphonzus Widjaja, stated that the public's purchasing power has not recovered since Covid-19.
During this Ramadan season, APPBI revealed that sales in the retail sector are still expected to grow. However, the ongoing weakening of purchasing power has led entrepreneurs to believe that the growth will not be significant. Alphonzus predicted that retail sales in this year's Eid celebration will only grow by less than 10 percent. "It will grow but only in single digits," he said.
Meanwhile, he still believes that the level of public visits to shopping centers can still increase by 15 to 20 percent. "In this economic condition, people still visit shopping centers, the number hasn't decreased, but their shopping patterns have shifted," he said.
Editor's Choice: Indonesian Consumer Spending Slumps in Early 2025: Deflation, Layoffs, and Global Crisis Among Key Triggers
Click here to get the latest news updates from Tempo on Google News
Open House at Presidential Palace: Former Presidents and Party Leaders Invited to Join Prabowo's Eid Celebration
47 menit lalu
President Prabowo will directly host an open house at the Presidential Palace after performing the Eid al-Fitr prayer at the Istiqlal Mosque.
Minister: Remission for 157,953 Inmates on Nyepi and Eid Will Eliminate Rp81bn Meal Costs
6 jam lalu
The granting of remission on Eid al-Fitr will eliminate the meal expenses for inmates amounting to Rp 80,460,405,000.
Minister Urges Eid Travelers to Report Any Kind of Violence during Travel
10 jam lalu
Indonesian Minister of Women's Empowerment urges travelers to report any kind of violence during their Eid homecoming exodus travel.
Anticipating Garbage Surge, Depok Deploys 40 Garbage Trucks during Eid
10 jam lalu
Depok City in West Java deploys 40 truck fleets to anticipate the surge of garbage during the Eid al-Fitr holiday.
Today's Top 3 News: Jakarta to Deploy Nearly 3,000 Sanitation Officers to Anticipate Eid Holiday
2 hari lalu
Here is the list of the top 3 news on Tempo English today.
BMKG Predicts Eid al-Fitr 2025 to Fall on March 31
2 hari lalu
The official Eid al-Fitr date will be confirmed through the isbat session conducted by the Ministry of Religious Affairs on March 29, 2025.
When Is Eid al-Fitr in Dubai? Here's What You Need to Know
2 hari lalu
With an array of exciting events and a vibrant atmosphere, Eid al-Fitr in Dubai is among the awaited public holidays in the UAE. Here are the details.
Prabowo Pays Zakat at Palace Through Baznas
2 hari lalu
Prabowo stated that zakat helps to reduce social inequality
Deputy Minister Says 'Inhumane' in Ojol Drivers Eid Bonus Debacle
2 hari lalu
Immanuel said he's been informed by applicators that the Eid bonus of Rp50,000 is given only to ojol drivers who are considered part-timers.
Mass Organizations Asking for THR to Remain Banned, Official Says
3 hari lalu
The Deputy Minister of Religion has never approved of the mass organizations' actions of requesting Eid holiday allowance (THR) by force.
