Consumer spending ahead of Eid is declining this year compared to previous years. Even cash flow during Eid al-Fitr 2025 is predicted to decrease, as indicated by the lower number of homecoming travelers.
The Ministry of Transportation predicts that the number of travelers will only reach 146.48 million, or about 52% of Indonesia’s population, a 24% decrease from last year’s 193.6 million.
The Indonesian Chamber of Commerce and Industry (KADIN) also estimates that cash circulation during Eid al-Fitr 2025 will reach IDR 137.975 trillion, down from IDR 157.3 trillion in 2024.
Dr. Yudistira Hendra Permana, an economist from UGM’s Vocational College (SV UGM), explained that the decline in Eid consumption is caused by a drop in people’s purchasing power.
He pointed out that this decrease is reflected in the ongoing deflation trend.
Dr. Permana also highlighted other concerning economic indicators.
“This shift in consumption trends is related to the current deflation trend, the weakening exchange rate, the sharp rise in gold prices, and the decline in the IHSG index, all indicating that we are not in a good economic situation,” he explained on Wednesday, Mar. 26, 2025.
According to him, these complex economic problems stem from various interrelated factors.
Those are unresolved social, political, and economic issues, particularly amid global economic pressures and budget efficiency, that remain unclear to the public.
“The failure to coordinate these factors has accumulated, leading to what we are experiencing today,” he elaborated.
Dr. Permana emphasized that this economic problem could have simultaneous adverse effects, particularly on micro, small, and medium enterprises (MSMEs).
“Regarding MSMEs, there is concern. The number of MSMEs is significant, and a large number of people are employed in this sector. So, when an economic blow hits small businesses, many people will be affected,” he explained.
Dr. Permana advised the public to save money in this challenging economic situation.
“People need to tighten their belts and prepare for potential economic shocks. If possible, save and be frugal,” he suggested.
However, he also cautioned against being too strict with saving, as it could slow down trade and economic activity.
“Go slowly. Tighten your belts, but not too much, or it will hurt. Be frugal and only spend on what is necessary,” Dr. Permana added.
He also reminded the public to prepare for future needs.
“Besides Eid, there are upcoming expenses such as the new school year and other necessities. Hold on to your current jobs and businesses,” he concluded.
Author: Rahma Khoirunnisa
Editor: Gusti Grehenson
Post-editor: Lintang
Image: Freepik