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Reduced holiday travel seen to slash Idul Fitri boon for regions this year

A leading business groups predicts a 12.3 percent decline in money circulation compared to last year’s Islamic festive season as the Transportation Ministry expects fewer people to leave urban centers for their hometowns.

Aditya Hadi (The Jakarta Post)
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Thu, March 20, 2025 Published on Mar. 19, 2025 Published on 2025-03-19T13:01:13+07:00

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Reduced holiday travel seen to slash Idul Fitri boon for regions this year Participants in the Jakarta administration's Free 2024 Idul Fitri Holiday Travel program wait for their bus to depart from the capital city's National Monument (Monas) Square on April 4, 2024. (Antara/Bayu Pratama S)

T

he Indonesian Chamber of Commerce and Industry (Kadin) has predicted a 12.3 percent drop in money circulation during this year’s Idul Fitri holiday compared to last year’s festive season.

That projection follows a study by the Transportation Ministry that estimates a sharp decline in the number of people visiting their hometowns in the seasonal mudik (exodus) phenomenon.

The number is expected to fall by 24 percent from last year’s 193.6 million travelers to just 146.5 million this year.

“Last year, we estimated that Idul Fitri would drive Rp 157.3 trillion in money circulation. This year, we expect only Rp 138 trillion,” Kadin’s deputy chair for regional autonomy, Sarman Simanjorang, said on Tuesday, as quoted by Kompas.

Sarman explained that the estimate assumes around 36.26 million families would participate in mudik, with a typical family of four people bringing Rp 3.75 million from urban centers to their hometowns.

The assumed amount of money brought per family is 10 percent higher than last year’s estimate, but that would not make up for the estimated decline in mudik travelers.

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He attributed the decline to several factors, including the short gap between the New Year and Idul Fitri holidays, which are just three months apart this year.

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