Why the 2026 Mudik is Key to Regional Economic Growth
JAKARTA — The Chief Executive of PT Bank Syariah Indonesia Tbk (BSI), Anggoro Eko Cahyo, has expressed optimism that the Lebaran mudik migration this year will drive increased consumer spending, particularly in regional areas. According to him, the movement of millions of people from major cities to their hometowns will result in money typically circulating in urban centres flowing to regional areas and stimulating local economies.
“With this mudik exodus, people from the cities spend their money in their respective regions, and we believe this is very positive because each region’s economy grows as a result of increased spending,” Anggoro said in Jakarta on Tuesday.
This optimism, he continued, aligns with BSI’s financing performance, which remained positively growing in January–February 2026, the two-month period preceding Ramadan and Idul Fitri 1447 Hijriah.
Anggoro explained that the bank’s financing distribution this year is focused on the consumer segment. In the fourth quarter of 2025, consumer financing accounted for approximately 46 per cent of the company’s total financing.
According to him, financing achievements in the first two months of the year remain in line with the company’s plans. BSI is targeting double-digit financing growth throughout 2026.
“We are indeed planning proportional financing growth each month based on our annual target. This year we are targeting double-digit growth, and up until the last two months we remain on track,” he stated.
Anggoro also addressed the tendency of some consumers to save their annual holiday allowance (Tunjangan Hari Raya). He viewed this as actually demonstrating improved financial literacy among the public.
According to him, the public is increasingly aware that their resources are limited, including money, so they are making wiser decisions about when to spend and when to save.
Nevertheless, Anggoro believes public enthusiasm for shopping will remain, particularly as religious holidays such as Idul Fitri approach. However, the pattern of expenditure may change, for example between family needs, personal needs, or savings.
“Spending can take various forms. Expenditure for family may remain the same, but for personal use it might decrease, such as purchasing fewer new clothes than in previous years,” he said.
He added that increased awareness of the need to save represents a positive signal for household financial conditions. “My point is, increased understanding of the importance of saving is a good signal,” he concluded.