Spokesperson for the Coordinating Ministry of the Economy, Haryo\nLimanseto, predicts that public activities during the 2026 Eid al-Fitr\nhomecoming period will serve as an instrument to enhance national\neconomic circulation. This is based on the characteristics of mass,\nscheduled homecoming activities that have a multiplier effect, acting as\na simultaneous driver for various real sectors.<\/p>\n
According to Haryo, every expenditure by homecomers creates a\nmultiplier effect that provides layered impacts for economic actors,\nincluding MSMEs, traders, and the transportation services sector. \u201cThis\nincreased activity also contributes to rising income from the trade and\nservices sectors,\u201d he stated in a written release in Jakarta on Monday,\n23 March 2026, as quoted from Antara.<\/p>\n
Empirically, Haryo said, the Eid al-Fitr homecoming has proven to be\na consistent and measurable instrument for strengthening the economy.\nThis is also demonstrated by a 2023 Central Bureau of Statistics (BPS)\nstudy showing that homecoming activities contributed around 1.5 percent\nto annual national economic growth (year-on-year).<\/p>\n
This contribution occurs through the redistribution of money flows\nfrom economic activity centres to various regions, thereby expanding\neconomic impacts and increasing more even money circulation. \u201cWith such\ngreat potential, policy synergy and strengthening the role of MSMEs are\nkey to optimising the Eid homecoming momentum to drive inclusive and\nsustainable economic growth,\u201d Haryo stated.<\/p>\n
In addition, historical data shows household consumption rises 15-20\npercent compared to normal months, in line with high public mobility and\nincreased money velocity.<\/p>\n
Meanwhile, the high Marginal Propensity to Consume (MPC) among\nIndonesians during this period further strengthens consumption drive,\nincluding income increases for regional MSMEs by up to 50-70 percent.\nFor the 2026 Eid al-Fitr moment, economic activity projections show an\noptimistic trend and are expected to rise compared to the previous\nyear.<\/p>\n
Referring to Eid al-Fitr 2025, which recorded public movement of\n154.62 million people, movement and spending in 2026 are hoped to\nincrease further. Thus, homecoming activities are expected to support\nthe annual economic growth target of 5.5-5.6 percent (year-on-year).<\/p>\n
Haryo stated that this optimism is supported by various stimulus\npolicies, including fiscal stimulus allocation of more than Rp12.8\ntrillion, distribution of social assistance worth Rp11.92 trillion to\n5.04 million beneficiary families ahead of Eid al-Fitr, and transport\nfare discounts worth Rp911.16 billion.<\/p>\n
Furthermore, he explained that household consumption contributes\naround 53-54 percent to Gross Domestic Product (GDP), and combined with\nvarious stimuli, it will be able to provide positive impacts on national\neconomic performance.<\/p>\n
The government, Haryo said, has consistently implemented various\npolicies each year to encourage economic activities through the Eid\nal-Fitr homecoming momentum. This is done by issuing policies for public\ntransport ticket discounts compensated through subsidies and fiscal\nincentives, as well as suspending Value-Added Tax (VAT) of 6 percent for\nairline tickets during Eid 2025, which successfully reduced ticket\nprices by up to 14 percent.<\/p>\n
Not only that, the government also lowered airport charges and avtur\nprices at 37 airports to increase the affordability of flight services\nfor the public, the Free Homecoming Programme to ease travel costs for\nthe public, and the Work From Anywhere (WFA) policy for civil servants\nsince 2022-2025.<\/p>\n
He claimed that the WFA policy has become a strategic innovation that\nnot only focuses on dispersing homecoming traffic density but also\nmeasurably extends the duration of homecomers\u2019 stays in their hometowns.\nBy still carrying out work and receiving full income, homecomers have\nmore time to engage in activities and shop, thus driving increased money\ncirculation and strengthening economic activities during the Eid\nperiod.<\/p>\n
Haryo assessed that despite global pressures from the Iran-Israel-US\nconflict, economic fundamentals remain strong. \u201cThe government is also\ncommitted to not raising fuel prices at this time, so public purchasing\npower remains maintained. Therefore, for this year\u2019s Eid al-Fitr, we\npredict the economy can be better than the previous year.\u201d<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/governments-view-on-eid-exodus-driving-the-economy-1774273874", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }