The Indonesian Association of Retailers (Aprindo) with the countrys economic growth predicted to grow 5-5.4 percent, the purchasing power of the people would grow.
"In 2017 an increase is expected, at least by the same rate of 10 percent in 2016 or higher, Aprindo chairman Ropy Mandei said here on Wednesday.
Based on data at Aprindo, retail sales in 2016 were valued at Rp181 trillion and are expected to rise to 1991.1 trillion in 2016. The total sales did not include sales of manufactured foods and beverages, which reached Rp1,430 trillion in 2015.
Retail performance in 2016 trillion is expected to continue to improve in December. A significant growth is expected by the end of 0216 and in the whole of the year, increase is around 8-19 percent, he said.
In 2016, the performance is better than in 2015 and among the factors attributable to the improvement in 2016 is low inflation and stable price of energy .
In addition, Bank Indonesia cut the interest rates three times in 2016 . The central bank has even replaced BI rate with BI 7-day Reverse Repo Rate.
"The monetary policy of Bank Indonesia determined loan factor, that there is relaxation in lending rate from 10-12 percent to 8-9 percent now," Roy said.
Aprindo said the more than 10 economic police packages issued by the government since late 2015 have positive impact. The deregulation packages have increased competitiveness of the countrys industry including retail industry, he said.(*)
Editor: Heru Purwanto
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