Government's View on Eid Exodus Driving the Economy
Spokesperson for the Coordinating Ministry of the Economy, Haryo Limanseto, predicts that public activities during the 2026 Eid al-Fitr homecoming period will serve as an instrument to enhance national economic circulation. This is based on the characteristics of mass, scheduled homecoming activities that have a multiplier effect, acting as a simultaneous driver for various real sectors.
According to Haryo, every expenditure by homecomers creates a multiplier effect that provides layered impacts for economic actors, including MSMEs, traders, and the transportation services sector. “This increased activity also contributes to rising income from the trade and services sectors,” he stated in a written release in Jakarta on Monday, 23 March 2026, as quoted from Antara.
Empirically, Haryo said, the Eid al-Fitr homecoming has proven to be a consistent and measurable instrument for strengthening the economy. This is also demonstrated by a 2023 Central Bureau of Statistics (BPS) study showing 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 more even money circulation. “With such great potential, policy synergy and strengthening the role of MSMEs are key to optimising the Eid homecoming momentum to drive inclusive and sustainable economic growth,” Haryo stated.
In addition, historical data shows household consumption rises 15-20 percent compared to normal months, in line with high public mobility and increased money velocity.
Meanwhile, the high Marginal Propensity to Consume (MPC) among Indonesians during this period further strengthens consumption drive, including income increases for regional MSMEs by up to 50-70 percent. For the 2026 Eid al-Fitr moment, economic activity projections show an optimistic trend and are expected to rise compared to the previous year.
Referring to Eid al-Fitr 2025, which recorded public movement of 154.62 million people, movement and spending in 2026 are hoped to increase further. Thus, homecoming activities are expected to support the annual economic growth target of 5.5-5.6 percent (year-on-year).
Haryo stated that 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.
Furthermore, he explained that household consumption contributes around 53-54 percent to Gross Domestic Product (GDP), and combined with various stimuli, it will be able to provide positive impacts on national economic performance.
The government, Haryo said, has consistently implemented various policies each year to encourage economic activities through the Eid al-Fitr homecoming momentum. This is done by issuing policies for public transport ticket discounts compensated through subsidies and fiscal incentives, as well as suspending Value-Added Tax (VAT) of 6 percent for airline tickets during Eid 2025, which successfully reduced ticket prices by up to 14 percent.
Not only that, the government also lowered airport charges and avtur prices at 37 airports to increase the affordability of flight services for the public, the Free Homecoming Programme to ease travel costs for the public, and the Work From Anywhere (WFA) policy for civil servants since 2022-2025.
He claimed that 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 activities during the Eid period.
Haryo assessed that despite global pressures from the Iran-Israel-US conflict, economic fundamentals remain strong. “The government is also 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 the economy can be better than the previous year.”