By: Nadira Citra Maheswari)*
The Eid al-Fitr holiday period is always a crucial phase in the dynamics of the national economy. The tradition of returning home (mudik), visiting relatives, and increased social activities make this period a key driver of increased household consumption. In this context, Eid al-Fitr incentives serve as a strategic instrument to maintain public purchasing power and accelerate domestic economic growth. This policy is not merely seasonal but also part of the government’s strategy to maintain economic stability amidst global challenges.
Household consumption has long been the largest contributor to Indonesia’s gross domestic product. Therefore, increased consumption during periods of high spending, such as Eid al-Fitr, has a significant impact on overall economic growth. Eid al-Fitr incentives are designed to ensure optimal utilization of this momentum, particularly in the face of external pressures such as the global economic slowdown and fluctuating commodity prices.
The government is utilizing the Ramadan and Eid al-Fitr periods as an opportune time to distribute targeted stimulus. Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the Indonesian government has allocated a budget of approximately IDR 13 trillion to fund programs during Ramadan and Eid al-Fitr 2026. The series of policies includes public transportation fare cuts, toll road discounts, and the distribution of social assistance in the form of rice and Minyakita cooking oil. According to Airlangga, the Eid incentives are designed as an instrument to maintain national economic balance. This statement emphasized that the policy is aimed at maintaining purchasing power while containing potential economic fluctuations during the peak consumption period.
The diverse incentives demonstrate a comprehensive approach to maintaining public liquidity. Transportation and toll road discounts are aimed at reducing mobility costs during the homecoming and return travel periods, while food aid focuses on ensuring basic needs are met. Thus, increased consumption is driven not only by non-food spending but also by stable prices of basic necessities.
The transportation sector is one of the direct beneficiaries of this policy. Increased public mobility during Eid al-Fitr contributes to a surge in demand for public transportation services. Anne Purba, Vice President of Corporate Communications at KAI, stated that the government will offer a 30% discount on train tickets during this year’s Eid al-Fitr period. The discount applies to train travel to various cities in Java and Sumatra. This policy is expected to expand public access to affordable transportation while maintaining the sustainability of the railway sector.
In addition to transportation, the retail sector also plays a crucial role in driving Eid al-Fitr consumption. Increased demand for goods during Ramadan and Eid al-Fitr is often accompanied by the risk of price increases. In response, local governments are actively working to create a conducive shopping climate. Jakarta Governor Pramono Anung Wibowo stated that the Jakarta Provincial Government is again preparing tax incentives for shopping centers offering discounts during Ramadan and Eid al-Fitr 1447 Hijri. This policy is expected to reduce shopping costs while boosting economic transactions. This step reflects the synergy between regional fiscal policy and the national strategy to maintain purchasing power.
The integration of central and regional policies creates a broad multiplier effect. Transportation discounts increase mobility, retail incentives encourage spending, while social assistance supports basic consumption. The impact is most pronounced on the micro, small, and medium-sized enterprises (MSMEs) sector, which relies on high consumer activity for their income. The flow of money during Eid al-Fitr is a crucial pillar for local economies, particularly in destinations for travelers returning home.
Eid al-Fitr incentives also serve as a socioeconomic stabilization tool. Without policy intervention, seasonal spikes in demand have the potential to trigger inflation, eroding the purchasing power of vulnerable groups. Through subsidies, food aid, and transportation cost controls, price pressures can be mitigated, allowing the economic benefits of Eid al-Fitr to be felt more evenly across all levels of society.
In a context of global uncertainty, Eid al-Fitr incentives play a role in maintaining consumer optimism and market confidence. Strong domestic consumption provides a crucial cushion for the national economy in the face of external pressures. This policy also sends a signal that the government is present to ensure economic activity continues to move while maintaining social stability during periods of high economic intensity.
From a fiscal perspective, Eid al-Fitr incentives reflect a measured and anticipatory policy approach. Budget allocations are focused on periods with high consumption elasticity, maximizing the stimulus’ impact. With disciplined budget management, this policy remains aligned with the principles of medium-term fiscal sustainability. Digital transformation also strengthens the effectiveness of Eid al-Fitr incentives. Data-driven social assistance distribution, cashless transactions, and discount promotions through digital platforms accelerate the distribution of policy benefits. Digitalization also drives changes in consumer consumption patterns and opens up broader market opportunities for businesses.
Moving forward, optimization of Eid al-Fitr incentives requires continued cross-sectoral evaluation and coordination. Inflation control, smooth distribution, and market oversight are key to ensuring increased liquidity does not lead to price pressures. With strong synergy between the government, regional governments, and businesses, the Eid al-Fitr momentum can be leveraged as a catalyst for inclusive economic growth.
Ultimately, the Eid al-Fitr incentive is not just an annual policy, but a strategic instrument for maintaining the pulse of the national economy. By strengthening consumption, equitable distribution of economic benefits, and social stability, this policy contributes to maintaining Indonesia’s economic resilience amidst evolving global dynamics.
*) The author is a Content Writer at Galaswara Digital Bureau