Although year-on-year economic growth slowed slightly in the first quarter of 2011, to 6.5%, from 6.9% in the previous quarter, leading indicators continue to point towards a period of strong growth ahead. Private consumption, which grew by 4.5% year on year in the first quarter and accounted for 2.6 percentage points of GDP growth, is an important engine of the economy, and the outlook is positive. In April the consumer confidence index published by Bank Indonesia (BI, the central bank) remained steady at 106.9, compared with 107.1 in March (an index value greater than 100 indicates that optimists outnumber pessimists in the survey). Although the index covering current economic conditions stayed pessimistic, at 95.6, the index of future expectations was very optimistic, at 118.2.

Consumers' optimism over future prospects is matched in the retail sector, as reflected in BI's retail sales index, which captures the perceptions of 270 medium-sized and large retailers in five cities. The March index rose to 251.1, up by 1.6% month on month and by 17.6% year on year. Retail sales are expected to be particularly strong around August, the Muslim fasting month of Ramadan and the post-fast Eid al-Fitr holiday period.