Reluctant Indonesian consumers deal huge blow to struggling Petra

Indonesian consumer confidence is plummeting.

There’s no exaggeration to say that Petra leans on Indonesian consumption in order to thrive, and when Indonesians are having second thoughts about spending, the company is expected to struggle.

According to analysts from DBS, Petra’s revenue growth is tied to Indonesia’s consumer spending, since Indonesia sales accounted for 72% of its revenue last year.

Pair this fact with dipping Indonesian consumer confidence readings for the past two months, and you have a crisis for Petra.

DBS says Indonesia’s consumer confidence readings have come off significantly to below 100. This is alarming, as it has been averaging 114 from January to August this year.

“We are hence less positive on revenue outlook going forward. An improvement in consumer confidence would aid top-line recovery,” DBS said.