Businesses in Indonesia see tepid economic boost during this year’s Eid ul Fitr
JAKARTA, Indonesia (MNTV) — Shinta Kamdani, chairwoman of the Indonesian Employers Association (Apindo), has said this year’s Idul Fitri did not bring the usual surge in economic growth.
“There may be an increase, but it won’t be as significant as usual. [The boost] will be lower than last year,” she said, as quoted by bisnis.com.
She pointed to data from the Transportation Ministry showing that the number of travelers making the annual exodus is expected to drop by 24 percent, from 193.6 million last year to just 146.5 million this year.
Still, some sectors, including transportation, hospitality, as well as food and beverages, have seen a lift in demand, though not at the usual levels. Shinta also commended the government for offering incentives, such as airfare discounts, to help stimulate spending.
“Even though it’s not as strong as in previous years, we are still making efforts to boost economic growth through promotions and sales,” she added.
The Indonesian Chamber of Commerce and Industry, or Kadin, had predicted a 12.3 percent drop in money circulation. “Last year, we estimated that Idul Fitri would drive 157.3 trillion rupiah ($9.3 billion) in money circulation. This year, we expect only 138 trillion rupiah ($9.2 billion),” Kadin’s deputy chair for regional autonomy, Sarman Simanjorang, said on March 18, as quoted by Kompas.
He attributed the decline to several factors, including the short gap between the New Year and Idul Fitri holidays, which are just three months apart this year.
Additionally, many households are bracing for major expenses in June when the new school year begins, while others are grappling with job losses and reduced spending power.
Coordinating Economic Minister Airlangga Hartarto, however, dismissed the suggestion that less money circulated during Idul Fitri this year compared to previous years.
“It’s moderate. Last year, we were having the presidential and legislative elections, so it’s different,” he said.
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