This is the Prediction for Retail Business in the Political Year 2024 News – 10 hours ago

Jakarta, CNBC Indonesia – General Chair of the Indonesian Retail Entrepreneurs Association (Aprindo) Roy Nicholas Mandey projects that retail business will experience an increase in the middle of the political year.

“Yes, there is (an increase). Because there is a democratic party. Even in the fourth quarter of 2023, yes. (Meanwhile) for the first quarter of 2024 to the second quarter of 2024 it will be supported by the holy months of Ramadhan and Eid al-Fitr (Eid al-Fitr), “That’s nothing new,” said Roy, quoted Thursday (16/11/2023).

“This year is a little better than 2022. The hope is that next year will be at least the same,” he said.

Roy said that in the coming political year or 2024, it is predicted that various populist policies will not necessarily emerge or come out immediately, because there will be a change of government.

“The government is still going on, it’s a year from now with the current government, but what we know is that someone has already started taking leave for the campaign, then someone has replaced them but the one who replaces them doesn’t know the extent of their steps, then they are already busy with focus. “for the elections on February 14 2024, then there will be another process until… yes, hopefully one round,” explained Roy.

He said retail growth follows fluctuations that occur according to market cycles.

“In the first quarter it was the same as the 4th quarter of 2022, then the 2nd quarter was very significant, there was the holy month of Ramadan and Eid. But in the 3rd quarter the million fell until September,” said Roy.

“Then in the fourth quarter it is hoped that it will increase because there are Christmas and New Year moments. Then there is a democratic party, there will definitely be extra spending needs,” he said.

Apart from that, he added, government spending was also reduced in the fourth quarter. Thus supporting domestic consumption. Not to mention investment.

“Because we haven’t finished the fourth quarter yet, there will still be extra spending, there will be Christmas and New Year, democracy party spending, government consumption, hopefully (retail sales) can grow 4-4.3%,” said Roy.

“Last year we were at 3.8-3.9%. This year 4.2% is good, hopefully,” he added.

In the future, he continued, purchasing power can also be maintained so that it continues to grow.

One of them, said Roy, is that purchasing power can be maintained with plans to increase labor wages in 2024. As the new wage formula has been determined by the government through Government Regulation (PP) No. 51/2023 concerning Amendments to PP No. 36/2021 concerning Wages. Which is promulgated and takes effect from November 10, 2023.

“There is no (decrease in purchasing power). Because there is an increase (in wages). And, purchasing power cannot be seen from one point. But also from conducive conditions. Then inflation, how does the government maintain inflation,” concluded Roy.

[Gambas:Video CNBC]

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