Difficult Times for Indonesian Consumer Consumption

CONSUMER GOODS - JAKARTA. Indonesia's economy is in need of a fresh impetus. The risk of household consumption flattening out looms large as the momentum from Ramadan and Eid celebrations wanes. Besides the need for funds for education expenses in the new academic year, citizens are likely to dig deeper into their pockets to cover loan installments due to higher interest rates. 

Simultaneously, the policy of extended holidays sparks a dilemma. On one hand, tourism spending increases, but on the other, industrial productivity declines. Consequently, this situation could impact national economic growth. So far, household consumption has been the largest contributor to Indonesia's gross domestic product (GDP).