Jakarta — One of Indonesia’s longest-standing retail brands, PT Matahari Department Store Tbk (LPPF), is set to close eight of its outlets, amid signals of prolonged pressure in the country’s consumer market. The confirmation came from Shinta Kamdani, Chairperson of the Indonesian Employers Association (APINDO), on Tuesday, May 27, 2025.
“Yes, it’s true. Retail is also affected,” she stated briefly, emphasizing how declining purchasing power continues to plague retail recovery across the country.
The announcement, though lacking specific locations and timelines, sends a clear message: traditional retail is under transformation. Even during the typically lucrative Ramadan season, Matahari reportedly experienced lower-than-expected consumer traffic and spending, a trend not seen in previous years.
“If we look at Ramadan this year, the demand was significantly lower compared to previous years,” Shinta added, highlighting a broader concern shared by many industry observers.
As of now, Matahari has not released an official statement regarding the closures, despite inquiries from the media. However, this move is widely seen as part of the company’s larger restructuring and streamlining efforts to sustain profitability.
With over six decades of brand legacy, Matahari’s decision underscores how retail institutions—regardless of their history—must evolve with shifting consumer expectations. The convergence of digital commerce, operational cost burdens, and heightened competition has forced many players to reassess physical store viability.
While some may interpret store closures as a sign of retreat, others see a strategic pivot. Reducing underperforming locations allows for a renewed focus on digital integration, experiential retail, and consumer personalization—elements essential for long-term relevance in a changing market landscape.
In the premium retail space, agility, foresight, and calculated transformation have become prerequisites. For industry leaders, Matahari’s move is a timely reminder that legacy alone is no longer enough.
