Heaptalk, Jakarta — The Ministry of Trade, through the Trade Policy Agency (BKPerdag), is encouraging the transformation of modern retail in the digital era during the 15th Gambir Trade Talk (GTT), held in a hybrid format at Hotel Borobudur, Jakarta, on Wednesday (08/14).
“There has been a shift in consumer behavior patterns when purchasing retail products. This poses both challenges and opportunities for retail sector businesses to remain sustainable in their operations,” explained Kasan, Head of BKPerdag, in his opening remarks at GTT #15 (08/14).
At the event themed ‘Modern Retail Transformation in the Digitalization Era: Opportunities and Challenges,’ Kasan stated, “The Ministry of Trade encourages the transformation of modern retail in the digital era by utilizing all marketing channels, including e-commerce. The shift in consumer behavior patterns in purchasing retail products presents challenges and opportunities for retail sector businesses.”
Digitalization has become essential in the new post-pandemic era of the global economy, including in Indonesia. Various trade sectors, including modern retail, must continue to adapt and innovate to leverage the current situation.
According to data from Bank Indonesia, retail product sales have increased post-pandemic. This is reflected in the July 2024 Real Sales Index, which is estimated to reach 212, growing by 4.3% year-on-year.
“The growth in retail sales is driven by the food, beverages, and tobacco group, as well as the clothing sub-group. The Consumer Confidence Index (IKK) for July 2024 was also recorded at 123.4. Although this figure is slightly lower than last year’s 123.5, it remains optimistic regarding future economic conditions. Considering the still-high potential for consumer spending and the prospective retail sales levels, efforts to boost the modern retail sector are necessary,” Kasan elaborated.
Meanwhile, Pande Nyoman Laksmi Kusumawati, Director of Trade, Investment, and International Economic Cooperation at Bappenas, noted that e-commerce is projected to be the fastest-growing retail channel. E-commerce is expected to contribute 24% to retail sales by 2027, up from 21% in 2023.
“Retail with e-commerce marketing channels is also projected to show strong sales growth, reaching US$1.4 trillion between 2022 and 2027. This potential is expected from emerging markets, accounting for over 64%. Additionally, digital wallets continue to be a preferred payment method. Digital wallets are projected to increase from 49% in 2022 to 54% in 2026,” Laksmi concluded.
