Amid global economic uncertainties, Indonesia aims to maximize its domestic economic potential, leveraging its population of approximately 281 million in 2024 as a strong retail market. Consumption growth in Indonesia has outpaced economic growth, reaching 12% since 2002. The Minister of Economic Affairs, Airlangga Hartarto, highlighted during the Indonesia Retail Summit 2024 that malls in Jakarta are more modern than those in many other countries, reflecting Jakarta's per capita income of over USD20,000. The government, through Law No. 6/2023 on Job Creation, has introduced policies to simplify trade activities, encouraging retail operators to partner with MSMEs, thereby creating market opportunities, new businesses, and jobs. Airlangga emphasized that supporting MSMEs in shopping centers and expanding retail stores across Indonesia, particularly in regions with medium to high per capita incomes, is essential for sustaining growth in the retail sector through productivity and innovation.
In 2024, the number of mall visitors has increased, especially during major holidays and school vacations, reflecting a Consumer Confidence Index of 123.4 in July 2024, indicating an optimistic outlook. The government aims to foster a conducive regulatory environment for all retail players, ensuring consumer protection with high-quality, safe, and standard-compliant products. Retailers are encouraged to innovate by introducing new concepts to meet consumer needs and lifestyles, from advanced payment technologies to exclusive products and services. The "Shop in Indonesia Only" program was launched to stimulate domestic consumption, with the government supporting initiatives to boost purchasing power, especially among the 164 million strong middle class. Key officials, including Deputy Coordinating Minister for Commerce and Industry Ali Murtopo Simbolon, Kemenko Perekonomian spokesperson Haryo Limanseto, and other prominent leaders, attended the event.
