Jakarta. Chief Economic Affairs Minister Airlangga Hartarto has rejected suggestions that Indonesians' purchasing power is in decline, following the country’s stronger-than-expected economic growth in the second quarter of 2025.

Indonesia’s gross domestic product expanded by 5.12 percent year-on-year between April and June, its strongest growth in two years, beating market expectations and showcasing resilience amid global and regional headwinds. The upbeat performance was supported by growth across all industrial sectors, with manufacturing, agriculture, trade, and mining together accounting for 63.59 percent of total output, according to the Central Statistics Agency (BPS).

In response to public discourse around the “Rojali” and “Rohana” phenomenon --terms used to describe mall visitors who browse but rarely buy-- Airlangga said that consumption patterns are evolving, not contracting.

“What we’re seeing is a shift in consumer behavior, with more people choosing to shop online instead of in physical stores,” Airlangga said at a press briefing in Jakarta on Tuesday.

According to Airlangga, sales figures in both retail and e-commerce channels are rising, particularly for cosmetics, personal care items, and household and office supplies, indicating that spending is far from stagnant. "Retail performance continues to grow, especially in online marketplaces. That’s the real data," Airlangga added.

The trade sector --comprising wholesale, retail, and vehicle repair-- grew 5.37 percent year-on-year in the second quarter, while household consumption, which accounts for 54 percent of GDP by expenditure, rose 4.97 percent in the same period, indicating that consumer spending remains healthy.

“The narrative around Rojali and Rohana is being blown out of proportion,” Airlangga said. “The facts tell a different story, and that’s what we should be looking at.”

The public debate around Rojali and Rohana has sparked concern over whether Indonesians are tightening their wallets due to economic uncertainty. Financial Services Authority (OJK) Chairman Mahendra Siregar acknowledged that caution among consumers is a natural response during periods of volatility.

“In times of uncertainty, it’s only logical for people to think twice before making spending decisions,” Mahendra said during a recent monthly board meeting press conference on Monday.

Still, Airlangga remains optimistic, asserting that Indonesia’s growth momentum and solid consumption trends provide a strong foundation heading into the second half of the year.

The government expects full-year GDP growth to stay within the 5 percent range, supported by domestic demand, export recovery, and improved investment sentiment.

Add as a preferred source on Google +