Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: Indonesia's food and drink industry will experience robust growth on the back of rising
incomes, positive tourism sector growth in the tourism sector and an expanding mass grocery retail sector.
Progressive government initiatives and a positive public infrastructure outlook will drive mass grocery
retail sector development. However, the deterioration of the government's fiscal position poses a significant
downside risk to our outlook.
Key Trends & Industry Developments
? Rising incomes will support growing demand for a wider product range and higher-value items, while
consumption will benefit from subdued inflation and supportive monetary policy.
? Alcohol sales have been hit by the government's decision to ban the sale of alcohol in convenience stores
across the country and to raise import duties on alcohol.
? Indonesia's organised mass grocery retail sector will continue to expand rapidly at the expense of
independent grocery stores and traditional open air markets.
? Progressive government initiatives towards economic openness will support growth in the food retailing