logo
Indonesia's economy is up, so why are its people down?

Indonesia's economy is up, so why are its people down?

Indonesia 's economy is growing at its fastest pace in two years. Not all consumers are buying it.
Advertisement
Rohatta, owner of a fried rice restaurant on the outskirts of the capital, Jakarta, says his business is having its worst spell since the pandemic, with 50 to 70 customers a day – down from 150.
'When they do come, they order fewer items. No drinks, no desserts,' he said. He has cut prices by about 20 per cent and added a less expensive rice bowl option to attract customers.
Indonesians are using new buzzwords to describe the pared-back lifestyle: 'Rojali,' a name for shoppers who rarely buy, and 'Rohana,' for people who inquire at shops but never really hit the checkout. That is peeving the government.
'The issues of Rohana and Rojali are being blown out of proportion,' Coordinating Minister for Economic Affairs Airlangga Hartarto said at a briefing late on Tuesday, after the government said growth jumped to a stronger-than-expected 5.12 per cent in the second quarter, partly on a 4.97 per cent gain in consumption. 'The facts are not as such.'
A saleswoman checks her phone in a quiet shopping mall in Depok, Indonesia, on Tuesday. Photo: EPA
But consumer goods giant Unilever Indonesia and fashion retailer Matahari Department Store both saw sales shrink in the first half of 2025, while instant noodle maker Indofood CBP Sukses Makmur eked out sales growth of just 1.7 per cent.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Chinese researchers lodge concerns over US debt as Beijing limits exposure
Chinese researchers lodge concerns over US debt as Beijing limits exposure

South China Morning Post

time3 hours ago

  • South China Morning Post

Chinese researchers lodge concerns over US debt as Beijing limits exposure

Calls for China to gradually reduce its exposure to US dollar assets are growing louder as Washington's national debt continues to set records, reigniting persistent worries over the long-term sustainability of an investment formerly considered rock solid. 'Although US Treasuries have not yet reached the default threshold, their expansion is unsustainable,' researchers from the Bank of China wrote in the latest issue of China Money, a publication supervised by the People's Bank of China, the country's central bank. With this concern in mind, China has been trimming its US Treasury holdings for three consecutive months, while keeping them roughly unchanged at the US$756 billion level in June, according to data released on Friday by the US Treasury Department. This remains the lowest level since March 2009. The researchers noted that US economic growth would be unlikely to offset rising debt from persistent budget and trade imbalances, warning that US President Donald Trump's efforts to narrow the trade deficit could curb global demand for the US dollar and undermine the currency's international role. This, they said, would put the country in a 'tug-of-war', oscillating between its economic and monetary priorities. 'Uncertainty over tariff, tax and fiscal reforms, coupled with a potential US dollar credibility crisis and speculation over the Mar-a-Lago Accord , could heighten volatility in the US Treasury market,' they said. '[We need to] gradually adjust US Treasury holdings and appropriately increase reserves of gold, key resources and strategic materials.'

6 pillars for peace to end wars in Asia
6 pillars for peace to end wars in Asia

South China Morning Post

time5 hours ago

  • South China Morning Post

6 pillars for peace to end wars in Asia

For a time, it seemed that economic interdependence had put an end to war between states. When Canadian psychologist Steven Pinker declared in 2011 that such wars had 'almost vanished', many believed the arc of history was bending towards peace. But from Ukraine to the recent Thailand-Cambodia conflict , the resurgence of wars in recent years has shown that we must look deeper at what sustains harmony between nations – and why some regions are so much better at it than others. Southeast Asia, though seen today as a relative oasis of stability and economic dynamism, does not enjoy the same freedom from conflict as North America , for example, where the prospect of war between neighbours is virtually unthinkable. Scholars have long argued that economic integration, particularly through trade, lessens the risk of conflict. There is truth in this. Since World War II, trade has indeed proven a powerful force for peace and prosperity. But in a rapidly changing world, trade alone is no longer enough to guarantee security. New, more robust mechanisms are needed to ensure that tensions between nuclear powers, especially, are contained. There is cause for hope. The European Union and North America are living proof that deep integration can bring lasting calm. Realistically, there is little to no prospect of armed conflict between the states that make up these regions. But can the rest of the world replicate this? And if so, how? European Union flags fly in front of the the seat of the European Commission in Brussels. Photo: dpa Six pillars for integrated peace

Hong Kong suspends bottled water deal with mainland firm, files police report
Hong Kong suspends bottled water deal with mainland firm, files police report

South China Morning Post

time5 hours ago

  • South China Morning Post

Hong Kong suspends bottled water deal with mainland firm, files police report

Hong Kong authorities have suspended a newly granted drinking water supply contract with a mainland Chinese company and reported the matter to police. Advertisement The Government Logistics Department said on Saturday that it doubted Xin Ding Xin Trade Company could fulfil its obligations under the 36-month contract, which was granted to it just two months ago. The agreement stipulates the supply of bottled drinking water to government offices on Hong Kong Island and some outlying islands, starting from the end of June. It was one of the first contracts of its kind granted to a mainland firm, beating long-time supplier, AS Watsons Group, a subsidiary of Li Ka-shing's CK Hutchison Holdings. 'Due to operating information recently obtained about Xin Ding Xin Trade Company, the Government Logistics Department does not believe that the company will be able to continue performing the contract and has decided to suspend it according to the terms of the contract,' it said. 'The department will continue to follow up on the case seriously, so it could take further action, including whether to terminate the related contract. The Government Logistics Department has already referred the matter to the police for investigation.' Advertisement The department noted that AS Watson would temporarily take over and supply water to the affected government offices from next week.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store