Government Projects Eid al-Fitr 2026 Homecoming to Boost National Economic Circulation

The government predicts that public activities during the Eid al-Fitr 2026 homecoming period can serve as an instrument to increase national economic circulation. Its mass, scheduled nature, and multiplier effect make homecoming a driver of various real sectors simultaneously. “Every expenditure by homecomers creates a multiplier effect that provides layered impacts on economic actors, including MSMEs, traders, and the transportation services sector. This increased activity also contributes to rising income from the trade and services sectors,” said Spokesperson for the Coordinating Ministry of the Economy, Haryo Limanseto, in his statement in Jakarta on Monday. He explained that empirically, Eid al-Fitr homecoming has proven to be a consistent and measurable instrument for strengthening the economy. A 2023 study by the Central Statistics Agency (BPS) also shows that homecoming activities contributed around 1.5 percent to annual national economic growth (year-on-year). This contribution occurs through the redistribution of money flows from economic activity centres to various regions, thereby expanding economic impacts and increasing the more even circulation of money. “With such great potential, policy synergy and strengthening the role of MSMEs are key to optimising the Lebaran homecoming momentum to drive inclusive and sustainable economic growth,” said Haryo. Based on historical data, household consumption increases by 15–20 percent compared to normal months, in line with high public mobility and increased velocity of money. The high Marginal Propensity to Consume (MPC) of Indonesian society during this period further strengthens consumption drive, including income increases for local MSMEs up to 50–70 percent. For the 2026 Eid al-Fitr momentum, economic activity projections show an optimistic trend and are estimated to increase compared to the previous year. The 2025 Eid al-Fitr evaluation recorded public movement reaching 154.62 million people. Movement and public spending in 2026 are hoped to increase further to support the annual economic growth target of 5.5-5.6 percent (year-on-year). This optimism is supported by various stimulus policies, including fiscal stimulus allocation of more than Rp12.8 trillion, distribution of social assistance worth Rp11.92 trillion to 5.04 million Beneficiary Families ahead of Eid al-Fitr, and transport fare discounts worth Rp911.16 billion. Spokesperson Haryo explained that with household consumption contributing around 53–54 percent to Gross Domestic Product (GDP), these various stimuli are projected to provide positive impacts on national economic performance. Furthermore, the government has consistently implemented various policies each year to encourage economic activity through the Eid al-Fitr homecoming momentum. These policies include providing discounts on public transport tickets compensated through subsidies and fiscal incentives, as well as the suspension of Value Added Tax (VAT) at 6 percent for aircraft tickets during Lebaran 2025, which successfully reduced ticket prices by up to 14 percent. In addition, airport charges and avtur fuel prices were reduced at 37 airports to increase the affordability of flight services for the public, the Free Homecoming Programme to ease public travel costs, and the Work From Anywhere (WFA) policy for civil servants since 2022–2025. The WFA policy has become a strategic innovation that not only focuses on dispersing homecoming traffic density but also measurably extends the duration of homecomers’ stays in their hometowns. By still carrying out work and receiving full income, homecomers have more time to engage in activities and shop, thus driving increased money circulation and strengthening economic activity during the Eid al-Fitr period. “Although there is global pressure due to the Iran-Israel-US conflict, our economic fundamentals remain strong. In addition, the government is committed to not raising fuel prices at this time, so public purchasing power remains maintained. Therefore, for this year’s Eid al-Fitr, we predict optimism that the economy can be better than the previous year,” concluded Spokesperson Haryo.