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Indonesia's retail sector is one of the most promising in Asia, on the back of its large population and growing middle class with higher purchasing power.
The short-term outlook is benign with private consumption expected to increase by more than 6% in 2018, but higher inflation could have a dampening effect.
The best way for smaller retailers to survive is to join a large purchasing association and to compete with e-commerce by providing outstanding service.
The business environment is highly competitive among the different distribution networks, reinforced by the increasing market share of online retailers.
Many long-standing retail chains are highly indebted, often from leveraged buyouts led by private equity firms, while investors reconsider further lending.
The growing insecurity over US trade policy pushes the European Union and trading partners to speed up the completion of free trade agreement negotiations