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Indonesia Retail Market Size 2025-2029

The Indonesia retail market size is forecast to increase by USD 49.9 billion at a CAGR of 4.7% between 2024 and 2029.

The market is experiencing significant expansion, driven by the increasing preference for local brands and the growing middle class population. According to the latest market research, this sector is poised for robust growth, fueled by the country's economic development and shifting consumer behaviors. However, the market's growth potential is tempered by several challenges. Underdeveloped infrastructure, particularly in rural areas, poses a significant obstacle to market expansion. Limited access to reliable transportation and inconsistent power supply hinder the ability of retailers to efficiently distribute goods and maintain consistent operations. Furthermore, regulatory hurdles impact adoption of modern retail formats, such as e-commerce and large-format stores, due to complex licensing requirements and red tape.
To capitalize on the market's opportunities and navigate these challenges effectively, retailers must adopt innovative strategies, such as partnering with local distributors and investing in technology solutions to streamline operations and improve supply chain efficiency. By staying agile and responsive to the market's unique dynamics, companies can successfully tap into Indonesia's vast consumer base and secure a competitive edge in this rapidly evolving market.

What will be the size of the Indonesia Retail Market during the forecast period?

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In Indonesia's dynamic retail market, digital technology plays a pivotal role in shaping modern spending habits. Social media platforms are transforming media distribution, enabling retail companies to reach wider audiences and engage with customers. Household purchasing power, influenced by financial services and government spending, continues to grow, driving private consumption. Digital technology also facilitates online commerce, including ride-sharing services, which are gaining popularity. Credit cost remains a concern for consumers, impacting their spending decisions. Palm oil, a significant export, influences the economy and household income.
Customer sentiments towards retailers are shaped by their experiences, with social welfare programs impacting purchasing power. Physical distribution channels continue to compete with digital platforms, offering unique advantages. Retail companies must navigate these trends to thrive in Indonesia's evolving retail landscape.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Distribution Channel

  Offline
  Online


Product

  Food and beverages
  Electrical and electronics
  Apparel and footwear
  Home improvement and household products
  Others


Ownership Structure

  Local Retailler
  International Retailer


End-User

  Urban
  Rural


Payment Type

  Cash
  Digital Payments (Mobile Apps
  Cards)
  BNPL (Buy Now Pay Later)


Consumer Segment

  Urban
  Rural


Geography

  APAC

    Indonesia

By Distribution Channel Insights

The offline segment is estimated to witness significant growth during the forecast period.

Convenience stores and department stores are integral components of the dynamic the market. Convenience stores, often co-located with gas stations, cater to private consumption needs with everyday essentials such as groceries, processed food products, and personal care items. Digital technology plays a significant role in these stores, with mobile apps and online commerce enabling special offers and tailor-made products for customers. Sustainability efforts and eco-friendly practices are also prioritized, aligning with modern spending habits. Department stores, on the other hand, offer a wide array of consumer goods under one roof. They have long been a staple in Indonesian cities, shaping private consumption patterns and redefining luxury services.

Retail chains, both local and international, dominate this sector, leveraging digital technology for inventory management, visual merchandising techniques, and brand loyalty programs. Government spending on infrastructure development and economic growth further bolsters the retail sector. Online retail, social media, and ride-sharing services have disrupted traditional retail models, leading to the emergence of organized retail markets and e-commerce brands. The middle class's increasing purchasing power and social welfare initiatives have fueled demand for a diverse range of products and services. Artificial intelligence and augmented reality are transforming the retail landscape, enhancing customer experiences and optimizing operations. Financial services c

In 2021, the sales value of the retail market in Indonesia amounted to approximately 133.5 billion U.S. dollars. This value was expected to increase steadily and reach around 243 billion dollars by 2026.

Explore the Indonesia Retail Market size, share, and analysis by [2025-2030]. Forecasted to reach USD 278.29 billion by 2030, growing at 3.98% CAGR.

The Indonesian retail market, valued at $193.3 billion in 2025, is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) of 4.7% from 2025 to 2033. This expansion is fueled by several key factors. Rising disposable incomes, a burgeoning middle class, and increasing urbanization are driving consumer spending, particularly within the food and beverage, electrical and electronics, and apparel and footwear sectors. The expansion of e-commerce platforms is further accelerating market growth, offering consumers greater convenience and access to a wider range of products. However, challenges remain. Infrastructure limitations in certain regions, particularly in rural areas, can hinder efficient distribution and last-mile delivery. Furthermore, competition among established players and the emergence of new entrants create a dynamic and sometimes volatile market environment. While the offline retail channel continues to dominate, the rapid adoption of online shopping presents significant opportunities for retailers to expand their reach and cater to a digitally savvy consumer base. The market is segmented by distribution channel (offline and online) and product category (food and beverages, electrical and electronics, apparel and footwear, home improvement and household products, and others). Strategic investments in logistics and digital infrastructure will be crucial for businesses to thrive in this rapidly evolving landscape. Successful navigation of the Indonesian retail market necessitates a nuanced understanding of consumer preferences and a robust omnichannel strategy. Adapting to the evolving technological landscape is paramount, with a focus on leveraging data analytics to personalize the customer experience. Effective supply chain management, including addressing logistical challenges, will be critical for maintaining competitiveness. The increasing influence of social media and mobile commerce necessitates strategic engagement across these channels. Businesses must also adapt to evolving consumer preferences related to sustainability and ethical sourcing. This requires a comprehensive approach encompassing product offerings, operational practices, and brand messaging. The potential for growth in the Indonesian retail market remains significant, but sustained success hinges on adaptability, strategic planning, and a customer-centric approach.

Retail Sales in Indonesia increased 5.50 percent in March of 2025 over the same month in the previous year. This dataset provides - Indonesia Retail Sales YoY - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The Indonesian retail industry is a dynamic and rapidly growing sector, with a market size valued at XX million in 2022 and a projected CAGR of 5.00% during the period 2023-2033. Key drivers of this growth include Indonesia's large and growing population, rising disposable incomes, and increasing urbanization. The industry is also benefiting from the rapid adoption of e-commerce, which has been accelerated by the COVID-19 pandemic. Major trends shaping the retail landscape include the increasing popularity of online shopping, the growth of omnichannel retailing, and the rising demand for sustainable and personalized products. The Indonesian retail market is highly fragmented, with a large number of small and medium-sized businesses. However, there are also a number of large, well-established retailers, including PT Matahari Putra Prima Tbk, Ramayana Lestari Sentosa, Mitra Adiperkasa, Alfamart, PT Trans Retail Indonesia, and Hero Supermarket Group. These retailers are increasingly investing in omnichannel retailing strategies, as well as improving their supply chain and logistics operations. The retail industry in Indonesia is also facing a number of challenges, including rising inflation, supply chain disruptions, and competition from e-commerce platforms. Recent developments include: In February 2021, Apparel retailer Giordano unveiled a large-scale store in the newly opened Bumi Raya City Mall in Pontianak, Indonesia.. Notable trends are: Online Retailing is Gaining More Traction, Yet Physical Retailing is Dominating the Market.

The Indonesian retail industry, a dynamic and rapidly evolving sector, is experiencing robust growth fueled by a burgeoning middle class, increasing urbanization, and rising disposable incomes. The market's expansion is driven by the strong adoption of e-commerce platforms, a trend accelerated by the pandemic and the increasing penetration of smartphones and internet access. Furthermore, the rise of omnichannel strategies, where retailers integrate online and offline experiences, is reshaping the competitive landscape. While traditional brick-and-mortar stores remain significant, the shift toward digital platforms is undeniable, pushing established players like PT Matahari Putra Prima Tbk and Ramayana Lestari Sentosa to adapt and innovate to maintain market share. The segment encompassing supermarkets and hypermarkets continues to hold a large portion of the market, while specialty retail stores and convenience stores are showing significant growth potential. However, challenges remain, including infrastructure limitations in certain regions, fluctuating currency values potentially impacting import costs, and the need for robust logistics networks to support both online and offline operations. Growth within the Indonesian retail sector is projected to continue at a healthy pace, with a Compound Annual Growth Rate (CAGR) of 5% over the forecast period (2025-2033). This sustained growth is attributed to factors such as increasing consumer spending, government initiatives to improve infrastructure, and the growing popularity of mobile payments. Competition within the sector is intense, with both domestic and international players vying for market share. Companies like Alfamart and Indomaret are already dominant players in the convenience store sector while larger players such as Mitra Adiperkasa are navigating the evolving landscape by diversifying their offerings and focusing on customer experience. Maintaining a competitive edge requires not only effective omnichannel strategies but also adept management of supply chain complexities and a deep understanding of shifting consumer preferences. The expansion into underserved rural areas also presents significant opportunities for retailers who can develop effective distribution networks. Recent developments include: In February 2021, Apparel retailer Giordano unveiled a large-scale store in the newly opened Bumi Raya City Mall in Pontianak, Indonesia.. Notable trends are: Online Retailing is Gaining More Traction, Yet Physical Retailing is Dominating the Market.

The Indonesian retail industry, exhibiting a Compound Annual Growth Rate (CAGR) of 5.00%, presents a dynamic and expansive market. Driven by a burgeoning middle class, rising disposable incomes, and increasing urbanization, the sector shows strong potential for continued growth through 2033. The market's segmentation reveals a diverse landscape, with significant contributions from food and beverages, personal and household care, and apparel segments. Growth is further fueled by the expansion of e-commerce, offering convenient access to a wider range of products for consumers across the archipelago. Major players like PT Matahari Putra Prima Tbk and Alfamart are leading the charge, leveraging both brick-and-mortar and online channels to capture market share. However, challenges remain, including robust competition, infrastructure limitations in certain regions, and the need to adapt to evolving consumer preferences. The industry's resilience is evident in its ability to navigate these challenges, with continued investment in logistics, technology, and omnichannel strategies anticipated to drive future expansion. Despite the positive outlook, the Indonesian retail sector faces several constraints. These include managing supply chain complexities, maintaining competitive pricing in a market with diverse players, and adapting to evolving consumer behavior influenced by global trends. The ongoing development of robust e-commerce infrastructure is crucial, especially in reaching consumers in more remote areas. Successfully navigating these challenges will be key for retailers to achieve sustainable growth. The competitive landscape is further intensified by the entry of international brands and the rise of local online marketplaces, creating a dynamic environment that demands innovation and strategic adaptation. Successfully balancing both online and offline strategies will prove critical for long-term success in this burgeoning market. The overall outlook remains positive, driven by the country's robust economic growth and evolving consumer demographics. Recent developments include: In February 2021, Apparel retailer Giordano unveiled a large-scale store in the newly opened Bumi Raya City Mall in Pontianak, Indonesia.. Notable trends are: Online Retailing is Gaining More Traction, Yet Physical Retailing is Dominating the Market.

In 2021, the sales value of the non-store retail market in Indonesia amounted to approximately 39 billion U.S. dollars. This value was expected to increase steadily and reach around 93 billion dollars by 2026. The Indonesian e-commerce market is one of the largest among its peers in the Southeast Asian region.

In 2019, the share of e-commerce to the total retail market in Indonesia was 8.2 percent. This figure is forecast to reach 24.1 percent by 2022, accounting for sustained growth of the sector.

Indonesia pharmacy retail market, including growth forecasts, challenges, and opportunities. Explore top, emerging, and leading players in this dynamic industry landscape.

Indonesia Growth of Retail Sales Index: YoY: Total data was reported at 0.545 % in Mar 2025. This records a decrease from the previous number of 2.030 % for Feb 2025. Indonesia Growth of Retail Sales Index: YoY: Total data is updated monthly, averaging 6.330 % from Jan 2011 (Median) to Mar 2025, with 171 observations. The data reached an all-time high of 28.219 % in Dec 2013 and a record low of -20.613 % in May 2020. Indonesia Growth of Retail Sales Index: YoY: Total data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Domestic Trade and Household Survey – Table ID.HD002: Retail Sales Survey: Growth of Retail Sales Index. [COVID-19-IMPACT]

In 2023, the retail sales of traditional grocery retailers in Indonesia amounted to approximately 78.9 billion U.S. dollars. The food retail industry in Indonesia depends heavily on traditional grocery retailers’ distribution. However, there has been an increasing use of online shopping channels to purchase food and groceries among consumers in recent years. The rise of e-commerce in the food retail industry The COVID-19 pandemic has shifted the distribution channel structure in the food retail industry. Social and mobility restrictions during the pandemic have driven growth in the use of e-commerce for food and grocery purchases. In 2022, consumers’ e-commerce spending on food in Indonesia was estimated to experience a positive change of approximately 17 percent, indicating the growing popularity of the shopping method. This new shopping habit has reshaped the Indonesian retail industry ecosystem and further contributed to the increasing revenue share of online retail in Indonesia’s food market in the last few years. Consumer food preferences Current food trends among Indonesian consumers have influenced their behavior toward food. Apart from being health conscious, Indonesian consumers are also becoming more aware of the impact of their food purchases on the environment. An increasing number of consumers in Indonesia are striving for sustainability in their food purchases, such as using their refill and reusable items when shopping for food. A recent study also shows that they are willing to pay more for green products.

This report covers Indonesia D2C Online Retail Industry, Market, Online D2C Players in Indonesia, Indonesia E commerce Market, Industry, Delivery Time in Indonesia D2C Market, Indonesia D2C Online Retail Industry Research Report, Indonesia D2C Online Retail Market Major Players, Indonesia D2C Online Retail Market Revenue, Vertical Sectors in D2C Online Retail Market, Indonesia’s D2C Market Projections.

Key information about Indonesia Retail Sales Growth

• Indonesia Retail Sales grew 0.0 % YoY in May 2023, compared with a 1.5 % increase in the previous month.
• Indonesia Retail Sales Growth YoY data is updated monthly, available from Jan 2011 to May 2023, with an average growth rate of 7.9 %.
• The data reached an all-time high of 28.2 % in Dec 2013 and a record low of -20.6 % in May 2020.
• In the latest reports, Car Sales of Indonesia recorded 82,097.0 units in May 2023, representing a growth of 65.2 %.

Indonesia Growth of Retail Sales Index: MoM: Other Goods of which: Clothing data was reported at 17.608 % in Mar 2025. This records an increase from the previous number of 4.553 % for Feb 2025. Indonesia Growth of Retail Sales Index: MoM: Other Goods of which: Clothing data is updated monthly, averaging 1.246 % from Jun 2011 (Median) to Mar 2025, with 166 observations. The data reached an all-time high of 49.824 % in Aug 2011 and a record low of -46.100 % in Sep 2011. Indonesia Growth of Retail Sales Index: MoM: Other Goods of which: Clothing data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Domestic Trade and Household Survey – Table ID.HD002: Retail Sales Survey: Growth of Retail Sales Index. [COVID-19-IMPACT]

Retail Sales Index Growth: YoY: Surabaya data was reported at 15.270 % in Jul 2019. This records a decrease from the previous number of 18.444 % for Jun 2019. Retail Sales Index Growth: YoY: Surabaya data is updated monthly, averaging 5.716 % from Jan 2011 (Median) to Jul 2019, with 103 observations. The data reached an all-time high of 65.238 % in Jun 2018 and a record low of -14.887 % in Jul 2015. Retail Sales Index Growth: YoY: Surabaya data remains active status in CEIC and is reported by Bank of Indonesia. The data is categorized under Global Database’s Indonesia – Table ID.HD001: Retail Sales Survey.

Verdict Retail’s, "Retail Sales of Department Stores in Indonesia: Market Size, Growth and Forecast to 2020" provides detailed historic and forecast statistics on retail sales from 2010 to 2020 taking place at "Department Stores" for each category at segment level. However, delivered wholesale sales are not included. The segment level analytics are provided for the following product categories: Apparel, accessories, luggage and leather goods Books, news and stationery Electrical and electronics Food and grocery Furniture and floor coverings Health and beauty Home and garden products Music, video and entertainment software Sports and leisure equipment Verdict Retail categorizes "Department Stores" as multi-Channel retailers, focusing primarily on non-grocery categories with distinct departments specializing in defined product areas. "Retail Sales of Department Stores in Indonesia: Market Size, Growth and Forecast to 2020" report is the result of Verdict Retail’s extensive market research covering the retail industry in Indonesia. The report acts as an essential tool for companies active across the Indonesia’s retail industry and for new players considering entering the market. The comprehensive statistics within the report provides insight into the operating environment of the market and also ensures right business decision making based on historical trends and industry model based forecasting. This is an on-demand report and will be delivered within 2 working days (excluding weekends) of the purchase. Read More

Verdict Retail’s, "Retail Sales by Vending Machines in Indonesia: Market Size, Growth and Forecast to 2020" provides detailed historic and forecast statistics on retail sales from 2010 to 2020 taking place at "Vending Machines" for each category at segment level. However, delivered wholesale sales are not included. The segment level analytics are provided for the following product categories: Books, news and stationery Electrical and electronics Food and grocery Health and beauty Verdict Retail categorizes "Vending Machines" as Verdict Retail includes paid-for sales from all vending machines not located within a store, such as public places, workplaces, pubs and bars under the Vending Machine Retail Channel. "Retail Sales by Vending Machines in Indonesia: Market Size, Growth and Forecast to 2020" report is the result of Verdict Retail’s extensive market research covering the retail industry in Indonesia. The report acts as an essential tool for companies active across the Indonesia’s retail industry and for new players considering entering the market. The comprehensive statistics within the report provides insight into the operating environment of the market and also ensures right business decision making based on historical trends and industry model based forecasting. This is an on-demand report and will be delivered within 2 working days (excluding weekends) of the purchase. Read More

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