Indonesia’s thrifty window shoppers cast doubt on economic success story
Summary
Despite Indonesia's economy showing growth on paper, many Indonesians feel financial pressure, leading to reduced consumer spending. The phenomenon of "Rohana" and "Rojali" or window shopping without purchasing is becoming common, indicating lowered purchasing power among middle-class consumers. Although official figures show GDP growth, public discontent is visible through protests and surveys showing youth pessimism about economic conditions.Key Facts
- Delima, a sales representative in Medan, notices fewer customers actually buying products at her cosmetics store.
- Social media terms "Rohana" and "Rojali" describe people who visit malls but rarely make purchases, suggesting financial constraints without increasing spending.
- PT Unilever Indonesia reported a sales drop of nearly 4.5% in the first half of 2025.
- PT Matahari Department Store saw sales decrease by more than 9%.
- Tulus Abadi notes a significant drop in shopping center transactions and vehicle sales, indicating reduced middle-class purchasing power.
- Indonesia's GDP grew by 5.12% year-on-year in the April-June period, exceeding expectations.
- Recent protests in Indonesia were against budget cuts and new allowances for lawmakers.
- According to a survey, only about 58% of young Indonesians are optimistic about the economy, compared to higher optimism in neighboring countries.
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