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View all search resultsCautious consumers scale back Idul Fitri spending as uncertainty weighs
Uncertain economic prospects and delayed or absent holiday allowance disbursements have made some consumers more cautious, prompting them to spend less and save more.
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Homeward bound: Passengers carrying luggage line up on March 16 at Pasar Senen train station in Central Jakarta as they prepare to travel to their hometowns as part of the Idul Fitri holiday mudik (exodus). (Reuters/Iqro Rinaldi)
T
he annual spending surge during Idul Fitri, typically supported by the mass exodus to hometowns (mudik) and holiday allowance (THR) payouts, may lose momentum this year as weaker mobility and more cautious households dampen consumption.
The Transportation Ministry estimates that only 143.91 million people will travel during the Idul Fitri exodus this year, a 6.55 percent decline from the 154 million recorded in 2025.
At the same time, the disbursement of THR, another key pillar of the Ramadan economy, is progressing but remains uneven across worker groups.
A survey by Litbang Kompas, the research arm of Kompas daily, conducted from March 6 to March 10, showed that only 27 percent of workers, primarily civil servants (ASN), had received THR at the time. Meanwhile, more than a third of private-sector respondents had yet to receive it, and 23.4 percent had not been paid despite being informed they would.
Current regulations stipulate that THR must be paid no later than seven days before Idul Fitri, which is expected to fall on either March 20 or March 21.
Read also: Analysis: Ramadan inflation surges, with geopolitics adding new risks
The delay has affected Baihaqi, a Gen Z startup employee, who has yet to receive his allowance after the deadline.
