aljazeera.com
Weakening Indonesian Purchasing Power Fuels "Rohana" and "Rojali" Trend
Amidst Indonesia's robust GDP growth, declining sales at physical stores and rising online shopping reflect weakening purchasing power among Indonesians, forcing many to become "Rohana" (window shoppers) and "Rojali" (rare buyers).
- What is the impact of the 'Rohana' and 'Rojali' phenomenon on Indonesian businesses and the economy?
- The 'Rohana' and 'Rojali' trends, representing a decline in purchasing power, directly impact Indonesian businesses. Unilever Indonesia saw a 4.5 percent sales drop in the first half of 2025, while PT Matahari Department Store experienced a steeper 9 percent decline. This weakens the middle class, the driving force of the Indonesian economy.
- What are the long-term implications of the shift in consumer behavior towards online shopping and reduced spending in physical stores?
- The long-term implications include the potential restructuring of Indonesia's retail landscape, favoring online platforms over brick-and-mortar stores. This shift may also necessitate policy adjustments to address declining purchasing power and its consequences for economic stability and social unrest, given the growing preference for online shopping for its price and convenience.
- How do the economic indicators presented in the article contrast with the public perception of the Indonesian economy, and what explains this discrepancy?
- While Indonesia's GDP grew by 5.12 percent year-on-year in April-June 2025, exceeding forecasts, public perception is markedly more pessimistic. This is evidenced by deadly protests against budget cuts and a survey showing only 58 percent of Indonesian youth are optimistic about the government's economic plans, compared to an average of 75 percent across five other Southeast Asian nations.
Cognitive Concepts
Framing Bias
The article presents a balanced view of the economic situation in Indonesia, incorporating perspectives from various stakeholders including sales representatives, economists, and government officials. However, the framing of the "Rohana" and "Rojali" phenomenon, while descriptive, might subtly suggest a negative economic trend by focusing on decreased mall sales before presenting counterarguments. The headline could be improved to be more neutral, avoiding terms like "buzzwords" which imply a frivolous trend.
Language Bias
The language used is largely neutral, although terms like "tightening their belts" and "erupting protests" carry slightly negative connotations. The use of "buzzwords" to describe "Rohana" and "Rojali" also has a slightly negative connotation. More neutral alternatives could include 'changing spending habits' and 'demonstrations'.
Bias by Omission
While the article presents a comprehensive overview, it could benefit from including data on inflation rates and the overall cost of living in Indonesia. This would provide a more complete context for understanding the decline in purchasing power. Additionally, a broader range of consumer spending data beyond retail and vehicle sales would strengthen the analysis. The article focuses heavily on the experiences of those in Medan. A wider geographic scope would provide a more comprehensive overview of the situation.
Sustainable Development Goals
The article highlights a decline in purchasing power among Indonesia's middle class, leading to reduced consumption and impacting economic growth. This directly relates to SDG 10 (Reduced Inequalities) as it shows a widening gap between those who can afford goods and services and those who cannot. The decrease in sales across various sectors, protests against budget cuts, and high youth unemployment all point to increased inequality.