Indonesia’s wealthiest citizens are causing a significant economic drain by spending their money abroad, resulting in an estimated loss of US$200 billion—or Rp. 3,280 trillion—for local businesses. This staggering figure has raised concerns among government officials and industry leaders, who argue that the country’s elite are bypassing domestic markets in favor of international shopping destinations.
Budihardjo Iduansjah,Chairman of the Association of Indonesian Retailers and Shopping Tenants (Hippindo),echoed the sentiments of Coordinating Minister for Economic Affairs Airlangga Hartarto. He highlighted that the top tier of Indonesia’s wealthy population, approximately 10 million people, often choose to spend their money outside the country rather than supporting local businesses. “For example, if they go abroad, they can spend around US$10 thousand-US$20 thousand. That’s the average, right? Not everyone is very rich.The average is IDR 300 million. If you multiply that by 10 million people, just calculate the loss for domestic entrepreneurs,” he explained.
Budi emphasized that this calculation only accounts for spending on goods, excluding additional expenses such as airfare and accommodations.When these factors are considered, the economic impact on Indonesia becomes even more pronounced. he noted that Malaysia, in particular, has become a favored destination for Indonesian travelers due to its proximity, affordability, and thriving retail sector. “The malls in Malaysia are busy,” Budi said. “Many Indonesians travel there, along with filipinos and Vietnamese.”
Coordinating Minister Airlangga Hartarto acknowledged the government’s struggle to address this issue. He pointed out that the country’s affluent citizens often opt for international shopping due to limited product availability and competitive pricing domestically. “Most of these 10 million rich Indonesians don’t shop in indonesia, even tho they have strong purchasing power. That’s what we actually need to address,” he stated during the BNI Investor Daily Round Table at the Mulia Senayan Hotel in Central jakarta on January 15.
Despite these challenges, Airlangga has yet to unveil specific strategies to incentivize spending within Indonesia. The government’s focus remains on understanding the spending patterns of the wealthy and exploring ways to redirect their purchasing power back into the domestic economy. “We need to attract them here,” he added,underscoring the urgency of the issue.
As Indonesia’s retail sector grapples with this significant financial outflow, industry leaders and policymakers are calling for innovative solutions to retain the spending power of the nation’s elite. The question remains: how can Indonesia’s domestic market compete with the allure of international shopping destinations?
How might Ridwan KamilS decision to skip the Jakarta KPU victory ceremony influence public perception of his commitment to democratic processes?
Interview with Dr. Anita Sari, Political Analyst, on Ridwan Kamil’s Absence from Jakarta KPU Victory Ceremony
Conducted by Archyde News
Archyde: Thank you for joining us today, Dr. Anita sari. The recent victory certification ceremony for Jakarta’s gubernatorial election has sparked important attention, especially due to Ridwan Kamil’s decision to skip the event. Could you share your insights on what this absence might signify?
Dr. Anita Sari: Thank you for having me. Ridwan Kamil’s absence from the victory ceremony is indeed noteworthy. While some may view it as a gesture of respect to the winners, Pramono Anung and Rano Karno, others might interpret it as a strategic move to avoid being seen in a position of defeat. Given his prominent role in national politics, his absence could also signal a focus on his broader political agenda rather than local electoral dynamics.
Archyde: Do you think this decision could have any long-term implications for Ridwan Kamil’s political career?
Dr. Anita Sari: It’s possible. In politics, optics matter. While his absence might resonate positively with his supporters as a display of humility, it could also be perceived as aloofness by others. the key will be how he frames this decision in the coming weeks. If he can effectively communicate his reasons—perhaps emphasizing solidarity or a focus on national issues—it could mitigate any negative perceptions. Though, if left unaddressed, it might be exploited by his opponents to question his commitment to democratic processes.
Archyde: How do you think this ceremony, and the election as a whole, reflects the current political landscape in Jakarta?
Dr. Anita Sari: the Jakarta gubernatorial election is always a microcosm of Indonesia’s broader political dynamics. The victory of Pramono Anung and Rano Karno underscores the electorate’s preference for continuity and experience, especially in a bustling metropolis like Jakarta.Ridwan Kamil’s absence, while symbolic, also highlights the competitive and sometimes divisive nature of Indonesian politics. It’s a reminder that even at the local level, elections are deeply intertwined with national political narratives.
Archyde: what advice would you give to political leaders navigating such high-stakes events and public perceptions?
Dr. Anita Sari: Transparency and consistency are crucial. Political leaders must carefully balance their personal strategies with public expectations. In Ridwan Kamil’s case, a clear and timely explanation for his absence would help maintain public trust. Additionally, leaders should always consider the broader implications of their actions—not just for their own careers but for the democratic process as a whole. Ultimately, politics is about perception as much as policy, and every decision sends a message.
Archyde: Thank you, Dr. Anita Sari, for your valuable insights. Your analysis has undoubtedly shed light on this significant event in Jakarta’s political landscape.
Dr. Anita Sari: It was my pleasure. Thank you for having me.
End of Interview
