some look like Han Chinese.
Does not matter how they look like, bro. They are citizens of China, which is really what matters most
***
Sluggish economy affects Ramadan spending
Reporter:
Andy Saputra 丨 CCTV.com
07-14-2015 17:17 BJT
The Muslim fasting month is traditionally a time of plenty in Indonesia: shoppers throng Jakarta`s markets snapping up gifts to exchange at extravagant fast-breaking celebrations. But amidst a slowing economy, consumer spending has dropped significantly, while the government has announced an exemption on luxury taxes to spur spending, it may not be the best solution to the problem.
Ramadhan.. the biggest holiday and month of spending for the most populous muslim nation in the world.
But this year, it could look a lot different as growth in Southeast Asia's largest economy has slipped to its most sluggish pace since 2009.
In the first quarter, consumption languished at 5 percent, the slowest for nearly four years, as disposable incomes were squeezed.
"What's being labelled as Indonesia's middle class are people who make $5 USD per day, these people are very sensitive to inflation, that's why we are seeing them focusing on primary needs and cutting spending," said Dr. Enny Sri Hartati, director of Institution of Development of Economics and Finance.
The government is exempting most goods from a luxury tax in a bid to boost household consumption and revive faltering economic growth.
But analysts are saying that Indonesia's problem lies deeper.
"The exemption is contra-productive to locally made goods, the real problem here is the trade deficit, that should be addressed and the beauracratic red tapes are still a major obstacle in making our products competitive abroad," Hartati said.
And there is an abundance of evidence that consumption, which accounts for about 55 percent of gross domestic product, will remain weak and retailers are expecting a slow Ramadan this year.
"Everyone is impacted, our sales have down 40% compared to last year, that's why we join this Jakarta Fair," said Apriandi Herawan, marketing director of Sinar Fajar Gold.
Jakarta Fair, the largest retail and cultural expo in the capital...It is a yearly venue for all kinds of brands to try and attract.. consumer spending. And with it's 4,5 million USD target spending.
the fair will provide a much needed boost in keeping the economic wheels turning.
"the Jakarta Fair is helping a lot in the contribution for the economic of the city of jakarta... people coming to the jakarta fair will have a big potential for spending...the only sector that can save the indonesian economics is actually the consumer spending," said Ralph Scheunemann, marketing director of Jakarta Fair.
That's why it will be crucial to turn this festivity into dollars and cents until the government can address Indonesia's structural problem.
