“The impacts spill over to regions other than Java, so the positive [economic] impacts will be felt across Indonesia,” Finance Minister Sri Mulyani said in a recent press conference.
o:p>The annual mudik (exodus) during the Idul Fitri holidays this year bolstered regional economic growth, Finance Minister Sri Mulyani has said.
She explained that the increased preference for land-based modes of transportation had resulted in increased spending at toll road rest areas, such as at eateries and for other types of consumption, which contributed to local economies.
“The impacts spill over to regions other than Java, so the positive [economic] impacts will be felt across Indonesia,” she said in a recent press conference.
The boost to local economies was in line with the expected strong household spending growth of above 5 percent, with consumer price index inflation predicted to remain “manageable" at 3.5 percent, she added. She cited spending during Ramadan and the election period as two main drivers of this growth.
Bank Indonesia (BI) also provided support for the annual spending spree, putting Rp 300 trillion (US$20.68 billion) in bills into circulation to support spending during the Idul Fitri holiday
Transportation Minister Budi Karya Sumadi said that the many free mudik (exodus) programs, such as free bus tickets, had meant that use of land-based transportation had increased in Java and Sumatra. He estimated that 23,000 cars and motorcycles would return to Sumatra from Java at the end of the holiday season.
“We have proven this year that infrastructure development has encouraged people to travel between cities,” Budi said.
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