Entrepreneurs Reveal Biang Kerok Shopping Center
- JAKARTA - The Indonesian Shopping center association (Hippindo) has identified key factors contributing to the struggles faced by brick-adn-mortar retailers in the country.
- According to Hippindo Chairperson Budihardjo Iduansjah, a significant shift in consumer behavior is a primary driver. Iduansjah notes that Indonesian consumers are increasingly turning to online shopping platforms.
- Maybe the market is saturated, with a lot of shopping happening online.
Indonesian Retailers Face Challenges Amid Shifting Consumer Habits,Trade War
Table of Contents
- Indonesian Retailers Face Challenges Amid Shifting Consumer Habits,Trade War
- Indonesian Retail Sector Under Pressure: A Q&A Guide
- What Key Challenges Are Indonesian Retailers Facing?
- Why Are Traditional Retailers Losing Ground to online Shopping?
- How is the Trade War Affecting the Indonesian Retail Industry?
- What Specific Actions is Hippindo Seeking From the Indonesian Government?
- What Kind of Economic Support is Being Requested?
- What is the Outlook for the Indonesian Retail Sector?
- Will Government Spending Help the retail Sector?
- Summary of Challenges and Proposed Solutions:
JAKARTA – The Indonesian Shopping center association (Hippindo) has identified key factors contributing to the struggles faced by brick-adn-mortar retailers in the country. Several major retailers, including Sun Department Store, Giant supermarkets, and most recently, Lulu Hypermarket, have closed stores in recent years.
Online Shopping Surge Impacts Physical Stores
According to Hippindo Chairperson Budihardjo Iduansjah, a significant shift in consumer behavior is a primary driver. Iduansjah notes that Indonesian consumers are increasingly turning to online shopping platforms.
Maybe the market is saturated, with a lot of shopping happening online. people are changing their habits. But traditional retail still has a place.
Trade War Exacerbates Retail Slump
Beyond changing consumer preferences, Iduansjah also pointed to the impact of international trade tensions, particularly the trade war initiated by the United States, as a contributing factor to the retail industryS sluggish performance.
Call for Government Support
In light of these challenges,Hippindo is urging the indonesian government to provide support to the retail sector. This includes streamlining business permits, adjusting tax policies, and offering stimulus measures to boost consumer spending, especially considering Indonesia’s economic growth slowed to 4.87% in the first quarter of 2025.
The trade war has a global effect, causing sluggishness everywhere. We are asking the government to ease business regulations, adjust taxes, and provide direct assistance to stimulate the economy.
Outlook Remains Challenging
Iduansjah anticipates continued difficulties for the retail industry throughout the remainder of the year, particularly following the peak shopping season associated with religious holidays.
“Yes, it must be a bit of a challenge. And that every year goes down,yes. Surely if after Eid, from the years down. It is natural, it is indeed down. But, maybe our hope is that the opening of government spending, maybe it must be opened or BLT. We ask for a BLT stimulus to ride,” Iduansjah added.
The association hopes that increased government spending and direct cash transfers to citizens can definitely help revitalize the sector.
Indonesian Retail Sector Under Pressure: A Q&A Guide
What Key Challenges Are Indonesian Retailers Facing?
Several factors are contributing to the struggles of brick-and-mortar retailers in indonesia, according to the Indonesian Shopping Center Association (hippindo). These challenges include shifts in consumer behavior, the rise of online shopping, and the impact of international trade tensions. Recent store closures by major retailers like Sun Department Store, Giant supermarkets, and Lulu Hypermarket, illustrate these difficulties.
Why Are Traditional Retailers Losing Ground to online Shopping?
A primary driver of the challenges faced by Indonesian retailers is the increasing popularity of online shopping platforms. Consumers are changing their habits and increasingly prefer the convenience and choices offered online. As Hippindo Chairperson Budihardjo Iduansjah notes, “Maybe the market is saturated, with a lot of shopping happening online. people are changing their habits. But traditional retail still has a place.”
How is the Trade War Affecting the Indonesian Retail Industry?
Beyond changing consumer habits, international trade tensions, specifically the trade war initiated by the United States, are exacerbating the retail industry’s struggles. These trade tensions have a global impact, contributing to sluggish economic performance, which in turn, affects consumer spending and retail sales.
What Specific Actions is Hippindo Seeking From the Indonesian Government?
In response to these challenges, Hippindo is calling for government support for the retail sector.This includes:
Streamlining business permits
Adjusting tax policies
* offering stimulus measures to boost consumer spending
What Kind of Economic Support is Being Requested?
Hippindo is urging the government to take measures to stimulate the economy and boost consumer spending. specifically, thay are requesting the government to ”ease business regulations, adjust taxes, and provide direct assistance to stimulate the economy.” They also hope that increased government spending and direct cash transfers to citizens can help revitalize the sector,particularly considering Indonesia’s economic growth slowed to 4.87% in the first quarter of 2025.
What is the Outlook for the Indonesian Retail Sector?
Budihardjo iduansjah anticipates continued difficulties for the retail industry throughout the remainder of the year, particularly following the peak shopping season associated with religious holidays.
Will Government Spending Help the retail Sector?
The association hopes that government spending and direct cash transfers to citizens can definitely help revitalize the sector. The source material specifically mentions the possibility of “the opening of government spending” and the need for “BLT” (direct cash transfers) to “ride” out the challenges.
Summary of Challenges and Proposed Solutions:
| Challenge | Impact | Proposed Solution by Hippindo |
| :——————————— | :———————————————————— | :————————————————————- |
| Shifting Consumer habits | Increased online shopping; decreased foot traffic in physical stores | N/A |
| trade War | Sluggish economic performance; reduced consumer spending | Government: Ease business regulations; Adjust taxes. |
| Economic Slowdown | Slowed economic growth (4.87% in Q1 2025) | Government: Stimulus measures; direct cash transfers (BLT). |