Indonesia’s consumer companies to ride on election spending, populist policies

DESPITE rising inflationary pressures, consumer companies in Indonesia are expected to be lifted by election-driven spending and a likely continuation of the government’s populist policies, analysts said.

Within the consumer sector, staples such as food and beverages as well as fast-moving goods will benefit the most from direct cash assistance and other measures introduced by the government to preserve the purchasing power of low to middle-income families.

Fitch Ratings expects handouts and social safety measures, which were rolled out from the fourth quarter of 2023, to maintain stable demand for the grocery, packaged food and poultry sectors.

The research house noted that the scale of the…