Indonesia Retail Sales Grow at Slower Pace in November

Retail sales in Indonesia grew at a slower pace in November despite discounting by stores ahead of the holiday season, a survey of Bank Indonesia showed on Wednesday.

The November retail sales index was up 17 percent on an annual basis, slowing from a revised 19.3 percent in October, led by fashion and accessories, as well as vehicles, spare parts and accessories.

Retail sales of fuel were down 5.6 percent from a year earlier, after a drop of 9 percent in October.

The survey of 600 retailers in 10 major cities across the country showed that respondents expect sales in the next three months to continue increasing at a slower rate.

But after that, growth should start to pick up because of expectations the central bank will stick with relatively low benchmark interest rates and that inflation will remain manageable.

Retail sales in December are seen rising 5.11 percent on a monthly basis, driven by equipment and communication, food, beverages and tobacco.

Earlier on Wednesday, the statistic bureau announced annual inflation in December was 4.3 percent, similar to the pace in November and well within the central bank’s target at 3.5-5.5 percent in 2012.