Airlangga Confident Ramadan-Eid Period Will Boost the Economy
Coordinating Minister for the Economy Airlangga Hartarto is optimistic that the national economic growth target of 5.5 per cent in the first quarter of 2026 can be achieved thanks to increased consumer spending during Ramadan and Eid al-Fitr.
“It seems the 5.5 target can be reached from the momentum during last Ramadan,” said Airlangga when met after Eid al-Fitr prayers in Jakarta on Saturday, 21 March 2026, as quoted from Antara.
Airlangga also highlighted the inflation dynamics, which are likely to be higher than in the first quarter of 2025. This is due to the absence of the 50 per cent electricity tariff discount programme that previously suppressed inflation throughout January-February 2025. Without that discount, he continued, household spending on electricity bills returns to normal levels, resulting in statistically higher inflation.
“Last year, up to February, there was an electricity tariff discount. So that made last year’s inflation in terms of electricity deflationary. This year, because there is no (electricity tariff discount), the figure will be higher,” he said.
Although inflationary pressures are expected to increase, the government is optimistic that consumer purchasing power and the rise in consumption during Ramadan and Eid al-Fitr will maintain economic growth momentum.
The government targets national economic growth in the first quarter of 2026 to be in the range of 5.5 per cent to 5.6 per cent (year on year/yoy). This target is driven by accelerated state spending, fiscal stimulus, and strengthened consumer purchasing power, particularly during the Ramadan and Eid al-Fitr period.
To maintain consumer purchasing power and boost economic growth, the government has launched an economic stimulus package in the first quarter of 2026.
One of them is transportation incentives for Eid homecoming in the form of a 30 per cent discount on train tickets, 30 per cent on sea transport, 100 per cent on ferry services, and 17-18 per cent discounts on flight tickets. The estimated budget for transportation incentives reaches Rp 911.16 billion from the state budget and non-state budget.
In addition, the government is distributing food aid worth Rp 12 trillion to beneficiary families. The aid consists of 10 kilograms of rice and 2 litres of cooking oil for two months, namely February-March 2026, to 35.04 million families.
The government is also allocating Rp 55 trillion for Eid bonuses to around 10.5 million state apparatus, comprising civil servants (ASN), government employees with work agreements (PPPK), TNI and Police, as well as pensioners.