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Your letters: '€˜Mudikonomics'€™ '€“ God'€™s influence

Slow going: Thousands of motorcyclists stop on a section of road in Tasikmalaya regency, West Java, on Tuesday, as the police allow motorists from the other direction to pass

The Jakarta Post
Thu, July 23, 2015

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Your letters: '€˜Mudikonomics'€™ '€“ God'€™s influence Slow going: Thousands of motorcyclists stop on a section of road in Tasikmalaya regency, West Java, on Tuesday, as the police allow motorists from the other direction to pass. The close-and-open system was applied to prevent traffic chaos as people started returning from their hometowns to Jakarta and its neighboring cities after celebrating Idul Fitri.(JP/Arya Dipa) (JP/Arya Dipa)

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span class="inline inline-center">Slow going: Thousands of motorcyclists stop on a section of road in Tasikmalaya regency, West Java, on Tuesday, as the police allow motorists from the other direction to pass. The close-and-open system was applied to prevent traffic chaos as people started returning from their hometowns to Jakarta and its neighboring cities after celebrating Idul Fitri.(JP/Arya Dipa)

Every year mudik seems to be a ritual tradition in its own right '€” the homecoming ahead of the end of Ramadhan '€” a time when there is an opportunity to gather with relatives home from overseas and of course also meet with parents. Our ears are familiar with the various sounds and phrases of this time of year, though some say mudik is a purely social phenomenon and has no cultural roots.

Regardless of arguments for and against each label, one thing is certain '€” the real effect homecoming has on people'€™s economic activity. Then, after the season of celebration and travel over Ramadhan and Idul Fitri has ended, the magnitude of the season'€™s economic impact can be observed.

Economic activity swells during Ramadhan, involving a simultaneous back and forth movement of people, goods and services causing an amazing economic impact. During Ramadhan, demand for consumer goods and transportation increases dramatically in both traditional and modern market settings, with people splurging on food, clothing, electronics and a range of tourism services.

And it'€™s no surprise, as almost 56 percent of the population in big cities journeyed home to their towns and villages in the last week of Ramadhan in the ritual mudik with its extraordinary '€œmultiplier effect'€. Just the number of mudik travelers last year alone is estimated at more than 30 million people '€” about 18 million people on public transport and the rest using private vehicles.

This phenomenon, referred to by some as '€œmudikonomics'€, has significant economic potential during Lebaran season and for some time afterwards. That is, regional economies, basking in the newfound flow of money from the homecoming, direct participate in '€œmudikonomics'€, with huge potential to stir the people'€™s economy '€” the economy of the people, by the people and for the people.

Rising consumption, especially during Ramadhan, automatically causes producers to massively up sales targets, and this very possibly leads to an increase in labor hiring to achieve these targets. Not to mention the emergence of impromptu informal sectors in many regions.

Further, '€œmudikonomics'€ should continue to be observed and appreciated for its potential as an important accelerator of economic development and equity '€” hopefully.

Ruli Alqodri Mustafa
Cilegon, Banten

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