07-Feb-18, Nikkei Asian Review
The string of closures has sparked concerns locally about Indonesia's dwindling purchasing power.
The data suggest that household consumption has been growing at a slower pace compared to previous years. GDP grew 5.07% in 2017, a slight pickup from the previous year. Household consumption, which accounts for more than half of the economy, grew 4.97% and weighed on overall growth.
%20Wataru%20Suzuki_Nikkei%20Asian%20Review.jpg "Retailers suffer as Indonesians choose travel over shopping (c) Wataru Suzuki Nikkei Asian Review")
Image: Nikkei Asian Review
Indonesians are no longer spending on clothes; expenditure on clothes and shoes grew only 3.62% last year. Instead, they have been saving up and spending more on experiences such as traveling.