The drop in the travels of EID and the dampening shopping spirit of vacation while the surgered prices affect Indonesia
The usual festive mood of EID al-Fitr Holiday to mark the end of the Islamic The sacred month of Ramadan was submissive in Indonesia this year while people make fun of themselves with low prices for food, clothing and essential goods.
Consumer expenditure Before the largest religious holiday for MuslimsWhich was celebrated on Sunday in Indonesia, it decreased compared to the previous year, with a expected slowdown in cash circulation due to fewer travelers.
Every year in Indonesia, almost three quarters of the population of the most populous country with a Muslim majority of the world for the annual return to home known locally as “Mudik” which is always welcomed with excitement.
People Pour from the main cities to return to the villages to celebrate holidays with prayers, parties and family meetings. Flights are books and anxious relatives weighted with boxes of gifts form long lines on bus stations and trains for the trip
But this year the Ministry of Transport has declared that EID travelers reached 146 million people, a 24% drop compared to 194 million travelers last year.
The Indonesian Chamber of Commerce and Indonesian industry project that the circulation of money during EID will reach 137.97 trillion of Rupiah ($ 8.33 billion), decreasing compared to the 157.3 trillions last year. The weakening of purchasing power is also reflected in the consumer trusted index of Bank Indonesia which fell to 126.4 in February from 127.2 in January.
Bhima Yudistira, executive director of the Center for Economic and Law Studies, or Celios, said that these trends indicate that the economy is under tension, led by economic difficulties, combined with the demort of the currency and mass layoffs in production.
“These have weakened both the corporate earnings and the income of workers who suppress consumer spending,” said Yudistira, adding that “he expects a less lively holiday season”.
He said that the festive spirit has been suffocated by hard economic realities, since the priceless prices and income income force residents to give priority to survival for the celebration.
Traditionally familiar consumption is a key engine of Indonesia GDP. He contributed over 50% to the economy of last year, helping to push annual growth to 5.11%. However, consumer spending in 2025 should be more subdued, Yudistira said.
Despite the recession, the government remains optimistic that Ramadan and Eid the momentum will support economic growth in the first quarter of 2025.
“Eid usually increases the economy through an increase in expenses,” said the Minister of Economic Affairs of Chief Airranga Hartarto before the Islamic holidays.
The government has recently introduced incentives to stimulate the economic activity, including discounts on air and toll rates, online shopping events at national level, direct cash assistance for 16 million families, reductions in electricity bills for low -content customers and tax exemptions for high work intensity sectors.
“With these programs in progress, the government hopes to bear the expense of consumers and support economic stability,” said Hartarto.
The situation also hit Endang Trisilowati, a mother of four children, who said that his family had to resize the budget of their holidays.
“Honestly, the economic difficulties are hitting us,” said Trisilowati. He described how it cooked several dishes every EID and invited neighbors, but now he can only afford a simple meal for his family.
“Many have resorted to finding a way to eat on that holiday, but the spirit is low,” he said.
