Indonesia’s retail sales rose 0.6% year-on-year in September 2026, slowing from 1.3% growth in August and marking the weakest pace since June amid persistent price pressures and higher borrowing costs. Still, sales increased for a third consecutive month. Growth in food, beverages and tobacco eased (1.3% vs 2.6% in August), while declines persisted in fuel (-8.6% vs -5.7%), information and communication equipment (-10.8% vs -10.9%), recreational goods (-3.8% vs -0.3%) and household equipment (-6.0% vs -5.2%). In contrast, automotive parts sales accelerated (5.3% vs 3.9%), while clothing sales rebounded (2.7% vs -12.4%). On a monthly basis, retail sales dropped 3.1%, reversing August’s 0.8% increase and marking the steepest decline since April. Looking ahead, retail activity is expected to strengthen modestly in October, supported by continued government stimulus measures.