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Airlangga says 10 million Indonesians prefer to shop in foreign nations

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Jakarta Globe - January 15, 2025

Erfan Maruf, Jakarta – Chief Economic Minister Airlangga Hartarto on Wednesday criticized the tendency of many wealthy Indonesians to shop abroad rather than spend their money locally, arguing that this behavior undermines the national economy.

Despite representing a small percentage of the population, Airlangga said the country's wealthiest citizens could significantly impact Indonesia's economic growth.

"We have a problem here – those 10 million people often choose not to spend their money in Indonesia," Airlangga said during the BNI Investor Daily Roundtable forum in Jakarta.

"This particular group of consumers is sensitive to product availability and assortments, and most of them do not shop in Indonesia," he added.

Nevertheless, Airlangga underlined that Indonesia's consumption index remains robust and continues to be a key driver of economic growth. Household consumption accounts for over 50 percent of the country's GDP, reflecting the vital role of domestic spending in maintaining economic stability.

During the last National Online Shopping Week, Indonesian e-commerce platforms recorded Rp 31.2 trillion ($807 million) in total transactions from December 10-16, showcasing the growing influence of digital marketplaces in bolstering consumption.

Airlangga also highlighted the government's initiatives to strengthen the domestic market, including policies to promote local products and improve supply chain efficiencies, ensuring better availability and variety for consumers.

According to him, boosting consumption is crucial for sustaining economic growth, and the country must create an environment where Indonesians feel encouraged to spend their money at home.

Source: https://jakartaglobe.id/business/airlangga-says-10-million-indonesians-prefer-to-shop-in-foreign-nation

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