Eid al-Fitr Amid War Shadows, Purchasing Power Weakens

Eid al-Fitr 1447 Hijri arrives amidst an uncertain global situation. The conflict between Iran and Israel, involving the United States, along with the closure of the Strait of Hormuz, is sparking concerns over economic impacts, including in Indonesia. Domestically, signs of weakening public purchasing power are beginning to be felt, affecting this year’s exodus tradition. The Ministry of Transportation estimates the number of travellers at around 1 million people, or about 50.6 percent of the population. This figure is down 1.75 percent from survey results and has dropped 6.55 percent compared to last year’s actual exodus. This decline is considered inseparable from the economic pressures felt by the public. “Public purchasing power is weakening; this directly affects decisions to travel for Eid,” said economist from Indef, Hakam Naja, in Jakarta, quoted on Thursday (19/3/2026). These pressures are reflected in the rise in prices of basic necessities. The Central Statistics Agency (BPS) recorded monthly inflation of 0.68 percent in February 2026, reversing from deflation of 0.15 percent in January. On the other hand, the rupiah exchange rate has also weakened, breaching Rp17,000 per US dollar, higher than the 2026 State Budget assumption of Rp16,500. This condition is causing prices of imported goods, including food, oil, and gas, to rise as well. For some people, this price increase is directly felt in daily expenditures, especially ahead of Eid.