Airlangga Says 10 Million Indonesians Prefer to Shop in Foreign Nations

Erfan Maruf
January 15, 2025 | 11:04 pm
SHARE
Coordinating Minister for Economic Affairs Airlangga Hartarto, left, speaks during the BNI Investor Daily Roundtable forum as host Enggartiasto Lukita, center, and BNI President Director Royke Tumilaar look on at the Mulia Hotel in Jakarta, Wednesday, Jan. 15, 2025. (Joanito De Saojoao)
Coordinating Minister for Economic Affairs Airlangga Hartarto, left, speaks during the BNI Investor Daily Roundtable forum as host Enggartiasto Lukita, center, and BNI President Director Royke Tumilaar look on at the Mulia Hotel in Jakarta, Wednesday, Jan. 15, 2025. (Joanito De Saojoao)

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.

Advertisement

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.

Tags: Keywords:
SHARE

Related Articles


Business May 9, 2025 | 1:46 pm

Airlangga Invites Japanese Chamber Members to Invest in Indonesia’s Strategic Projects

Japan currently ranks as Indonesia’s sixth-largest source of foreign investment, with over 12,800 projects to date.
Business May 5, 2025 | 5:04 pm

Japan-Backed Muara Laboh Geothermal Reaches Financial Close for Expansion

Muara Laboh geothermal project's second unit will enter operations in 2027.
Business May 5, 2025 | 1:33 pm

Indonesia’s Q1 Economic Growth Slows to 4.87 Pct  

This was the lowest Q1 growth that Indonesia had ever recorded over the past three years.
News May 3, 2025 | 10:00 am

Indonesia Aims to Seal EU Trade Deal by Mid-2025 After Years of Talks

Indonesia aims to finalize its long-delayed CEPA trade pact with the EU by mid-2025, eyeing tariff cuts and equal market access benefits.
Business May 1, 2025 | 10:54 am

‘Early Bird Gets the Worm’: Airlangga Reflects on Swift Trade Talks with US

As Southeast Asia braces for the fallout from Washington’s sweeping tariff hikes, Indonesia is positioning itself as a proactive negotiator.
Business May 1, 2025 | 9:24 am

As US Tariff Looms, Indonesia Now Closer to Joining Mexico’s CPTPP Trade Club

The CPTPP is a trade pact that evolved out the Trans-Pacific Partnership (TPP) -- a separate agreement that the Trump-led US had exited.
Business Apr 30, 2025 | 11:47 pm

Airlangga: US Tariffs a Wake-Up Call for Indonesia to Reform

Indonesia ranks eighth among the countries affected by the US tariff hike, facing a 32 percent increase.
Business Apr 28, 2025 | 9:01 pm

President Prabowo Approves Task Forces to Address Tariffs, Unemployment, and Deregulation

Indonesia forms three task forces to tackle economic issues, focusing on US tariffs, job creation, and regulatory reforms amid global uncert
Business Apr 25, 2025 | 2:35 pm

Still No Talks of Mangga Dua’s Fake Goods in US Tariff Negotiations

The US has raised concerns over the counterfeit goods trade in Jakarta's Mangga Dua, a popular shopping district in North Jakarta.
Business Apr 25, 2025 | 11:09 am

Indonesia Open to Foreign Payment Firms Amid US Concerns Over QRIS

At present, US financial giants such as Visa and Mastercard are available in Indonesia.

The Latest


News 6 hours ago

At Least 60 Killed in Israeli Strikes as Gaza Aid Remains Scarce

At least 60 killed in Gaza strikes as Israel allows limited aid amid global pressure and UN warnings of looming famine.
Business 6 hours ago

Benzoin Resin Touted as Next Big Commodity in Indonesia’s Downstream Strategy

Luhut Pandjaitan says benzoin resin, or kemenyan, holds untapped potential for Indonesia’s downstream strategy and rural economic growth.
Business 6 hours ago

Trump Threatens 50% Tariffs on EU, 25% on Apple iPhones Made Abroad

Trump threatens 50% tariffs on EU goods and 25% on Apple products unless iPhones are made in the US, escalating his trade war.
News 8 hours ago

Minister Shuts Down Tangerang Steel Plant Over Toxic Smoke Emissions

The facility, operated by Power Steel Mandiri in the Cikupa Industrial Complex, was found to be emitting hazardous air pollutants.
Business 9 hours ago

Shell’s Exit from Indonesia Fuel Retail Not a Sign of Energy Sector Decline, Says Minister

Energy Minister Bahlil Lahadalia says Shell’s sale of Indonesian fuel stations is a normal business move, not a worsening energy sector.
COPYRIGHT © 2025 JAKARTA GLOBE. ALL RIGHTS RESERVED