Public Spending Begins to Slow After Eid 2026, Upper Class Becomes the Supporter

Mandiri Institute has recorded that public spending patterns are beginning to return to normal after the Eid al-Fitr 2026 period. Based on Mandiri Spending Index (MSI) data, the public spending index peaked at 124.3 points on 22 March 2026 during the Eid period, then moderated to 122.3 points in the first week of May 2026. “Public spending has experienced moderation. So, up to 5 May, MSI moderated to 122.3 after five consecutive weeks of correction,” said Head of Mandiri Institute Andre Simangunsong during the Mandiri Macro and Market Brief 2Q26 in Jakarta on Monday (11/5/2026). Although it is considered a slowdown, Andre assessed that this year’s consumption patterns are still better than the same period last year. According to him, post-Eid 2025 saw a fairly sharp drop in consumption, followed by a strong recovery. Meanwhile, in 2026, the spending slowdown occurred more gradually, reflecting more stable consumption patterns. “If we compare 2026 with 2025, we see that the moderation in 2026 appears more gradual. Last year, after the Eid peak effect, public spending dropped significantly, but the rebound was also significant,” Andre explained. “However, at least here we see that in the fifth week or during the Labour Day holiday, MSI has entered positive weekly growth,” he added. From the income group perspective, Mandiri Institute observed that consumption growth is still supported by the upper-income group. The upper class spending growth was recorded at 5.3% annually in 2026, higher than last year’s 3.1%. In contrast, the lower and middle groups experienced a slowdown in spending growth.