Indonesia's Retail Sales Declined 3.9% YoY in May-26

International Monetary Fund (IMF) Maintained Indonesia's FY26 GDP Growth Forecast at 5.0%

IMF maintained Indonesia's FY26 GDP growth forecast at 5.0%, while projecting growth to accelerate to 5.1% in FY27, outperforming the 4.8% average for emerging and developing Asia. However, IMF lowered its global FY26 growth forecast to 3.0% (vs. Jan-26: 3.3%) due to trade tensions and geopolitical conflicts, while warning that prolonged tariff disputes and Middle East conflicts remain key downside risks. (Bisnis)

Indonesia's Retail Sales Declined 3.9% YoY in May-26

Indonesia's retail sales declined 3.9% YoY in May-26, following a 3.7% contraction in Apr-26 and marking the steepest annual decline since May-23. The weakness was driven by softer sales of food, beverages and tobacco, clothing, and household equipment, while sales of information and communication equipment remained deeply negative. On a monthly basis, retail sales fell 1.5%, improving from the 11.6% decline recorded in Apr-26, indicating consumer spending remained under pressure amid elevated living costs. (Trading Economics)

Indonesia's 1H26 Car Sales Rose on Strong New Model Launches

Indonesia's car sales maintained strong momentum in 1H26, with wholesale sales increasing 15.9% YoY to 436.6k units and retail sales rising 10.5% YoY to 433.8k units, supported by the launch of new vehicle models featuring more competitive designs, technology, and pricing, according to the Association of Indonesian Automotive Industries (GAIKINDO). While the association expects demand to remain resilient in 2H26, it noted that high interest rates, rupiah volatility, and weak consumer purchasing power remain key risks to industry growth. Toyota remained the market leader in Jun-26 with wholesale sales of 22.8k units, followed by Daihatsu (14.1k units) and Suzuki (6.1k units). (Kontan)

Bank Jago (ARTO) and BFI Finance (BFIN) Explored Merger Option

ARTO and BFIN are reportedly evaluating a potential merger, with controlling shareholder Jerry Ng assessing strategic options alongside Goldman Sachs. If completed, the combined entity could have an estimated market capitalization of IDR25tn (c.USD1.4b), although discussions remain preliminary with no final decision reached. Both ARTO and BFIN stated they have no material information to disclose regarding the reported merger or any corporate action. (Kontan)