Heaptalk, Jakarta — The Coordinating Minister for Economic Affairs, Airlangga Hartarto, officially opened the Indonesia Retail Summit (IRS) 2024.
In his opening remarks, Airlangga Hartarto highlighted the need to optimize Indonesia’s domestic economic potential fully. Indonesia, with an estimated population of 281 million in 2024, is the fourth most populous country in the world, providing a substantial retail market that needs to be harnessed.
“Since 2002, the growth of the consumption sector in Indonesia has been greater than economic growth, at 12%. Malls in Indonesia, especially Jakarta, are more modern and advanced than in other countries. We must applaud the retailers for this achievement. This is supported by a per capita income in Jakarta exceeding US$20,000. The number of retail stores opened in a region can reflect its per capita income,” said Airlangga.
The government is also encouraging shopping center businesses to partner with MSMEs. Through such partnerships and collaborations, new market opportunities for MSME products will be created, new jobs will be generated, and a healthy business climate will be fostered.
“Product and positioning are vital in retail. There must be dedicated space for MSMEs in various shopping centers. The number of retail stores continues to grow and is progressing well. We want to see this in Jakarta and across Indonesia, as other regions also have mid-to-high per capita incomes. To keep the retail sector growing, productivity and innovation must be continuously pushed,” Airlangga added.
In the same event, Trade Minister Zulkifli Hasan commented on Indonesia’s economic recovery, noting that the economy has fully rebounded after being impacted by the COVID-19 pandemic.
“There’s no denying that the COVID-19 pandemic caused an economic downturn, but the economy has gradually recovered, and in Q2-2024, it grew by 5.05% year-on-year,” said Trade Minister Zulkifli Hasan, represented by Moga Simatupang, Director General of Domestic Trade at the Ministry of Trade.
The Indonesia Retail Summit (IRS) returns for the third time, bringing together all stakeholders in Indonesia’s retail sector to plan for future growth. The event, themed “Navigating the Future of Retail: Strategies for Competitiveness and Innovation,” is held over two days starting Wednesday (28/9/2024) in Jakarta. Key industry players, including several ministries, associations, and thousands of national retailers, attend, making it the largest retail conference and expo.
Following last year’s success, the IRS is projected to be a hub for discussions and planning for the future of retail in Indonesia and Southeast Asia. This year’s event targets the ASEAN retail sector as the epicenter of economic growth. With over 4,000 participants and 100 speakers, the IRS brings together stakeholders across the retail ecosystem, offering new collaborations and innovation opportunities.
Retail in Indonesia has seen positive growth this year. Data from Bank Indonesia (BI) shows that the Real Sales Index (IPR) in February 2024 was recorded at 214.1, a 6.4 percent year-on-year increase. This growth has been primarily driven by rising consumer purchasing power, the rapid expansion of e-commerce, and technological innovations in retail operations.
