Indonesia Consumer 2022 Outlook: Recovery In Spending As Vaccination Rate Increases

Key View

• Consumer spending in Indonesia will post solid growth over 2022, after 2 years of Covid-19 related economic slowdowns.
• Both retail sales and consumer confidence indices have so far struggled to reach pre-Covid-19 levels. While there are recent signs that the situation is improving, we do note that higher inflation and Indonesia’s low vaccination rates does pose a risk to consumer spending over 2022.
• We highlight several risks to outlook over 2022, especially in H122, including elevated inflation and the possibility of new Covid-19 variants, which could lead to the reimposition of Covid-related restrictions.