Consumption Soars, Government Prepares for MSMEs to Upgrade
JAKARTA — This year’s homecoming travel period brings a breath of fresh air to micro, small, and medium enterprises (MSMEs) across Indonesia. The surge in public consumption has significantly driven cash flow, while also opening up real opportunities for MSMEs to grow stronger.
Sarman Simanjorang, Deputy Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for Regional Autonomy, stated that money turnover during the 2026 homecoming travel period is estimated to reach Rp148.39 trillion to Rp161.88 trillion, in line with increased household consumption and mobility in various regions.
“It still has the potential to reach Rp161.88 trillion, assuming the average family brings in Rp4,500,000,” said Sarman.
This surge was supported by the number of travelers returning home, which reached 143.9 million people, or around 50.6 percent of Indonesia’s total population — equivalent to around 35.97 million families.
The sector most impacted is the MSME sector in destination areas for homecoming travelers. Economic activity in the tourism sector and regional MSMEs is predicted to see a surge in turnover, particularly from the trade in food, beverages, souvenirs, and regional specialty products. Household consumption is also projected to increase by 10–15 percent, contributing to national economic growth in the first quarter of 2026.
“Most importantly, the government can maintain public psychological well-being by guaranteeing a constant supply of fuel and gas, so people will feel confident spending their money in their respective regions,” Sarman emphasized.
On the policy front, the government is not only celebrating this momentum but also laying a long-term foundation for the advancement of MSMEs. The Vice President’s Secretariat emphasized the importance of cross-sector collaboration in strengthening MSMEs and empowering women economically.
Special Staff to the Vice President, Tina Talisa, urged the government to immediately formulate clear benchmarks for what it means for MSMEs to “move up a class.”
“Does moving up a class mean an increase in the number of employees, assets, turnover, or increased financial literacy among business owners? We need to formulate these criteria immediately,” Tina said.
In the forum, various stakeholders also highlighted the still low proportion of female entrepreneurs in Indonesia, which has only reached around 37 percent, as well as the importance of business legality through having a Business Identification Number (NIB) for micro-entrepreneurs.
With a large amount of money circulating and the government’s commitment to systematically improving the MSME ecosystem, the hope that millions of small business owners will truly move up a class is increasingly wide open.