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The interior of a Matahari Department Store at a shopping mall in Jakarta.   © Reuters
FT Confidential Research

Indonesia expecting to see a big-ticket recovery in 2018

FTCR survey shows improving household incomes inspiring consumers to spend

| Indonesia

Indonesia's urban consumers will see better days in 2018 after nearly two years of weak income performance. We expect higher household incomes to lead to faster consumption growth, although this will depend on how the rupiah is affected by monetary tightening in developed economies.

FT Confidential Research's latest survey of 1,000 Indonesians in 25 cities revealed that consumers' perception of their incomes improved dramatically in the third quarter, suggesting the gradual export recovery throughout 2017 has trickled down to households. So far this has failed to boost consumers' willingness to spend on non-essential items, however, as shown by our Discretionary Spending Index (see chart).

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