Berita Satu Team, Jakarta – The Muslim holy month of Ramadan and the upcoming Eid al-Fitr holiday are once again accelerating Indonesia's economic activity, driving a surge in consumer spending, retail transactions, and travel demand across Southeast Asia's largest economy.
From the first days of fasting on Feb. 19, shopping centers and traditional markets have been crowded with consumers purchasing daily necessities, festive clothing, and gifts ahead of the Eid celebration. Cash withdrawals have risen sharply as households prepare for higher spending on food, apparel, and religious obligations such as zakat, increasing the circulation of money throughout the economy.Household consumption – the largest contributor to Indonesia's gross domestic product – typically strengthens during Ramadan, creating a seasonal boost that ripples across sectors from agriculture to logistics.
The pulse of this activity is most visible in traditional markets, where traders report heavier foot traffic and rising prices for several food commodities as demand increases. The flow of money moves quickly through the supply chain – from consumers to retailers, suppliers and distributors – generating a rapid cycle of transactions that supports farmers and producers.
Modern retail outlets and e-commerce platforms are also benefiting from the surge in spending. Seasonal discounts and promotional campaigns are encouraging consumers to buy new clothing, gift hampers, and electronics. Retailers are extending operating hours and hiring temporary workers to accommodate the spike in demand.
Banks and financing institutions are also joining the momentum by offering installment plans and consumer financing to stimulate purchases. The trend is helping accelerate money circulation and support services industries, including creative businesses and light manufacturing that supply Ramadan-related goods.
Economists say three sectors play a particularly important role during the Ramadan and Eid period: food, transportation, and logistics.
"These sectors directly support economic activity during Ramadan and Eid," Esther Sri Astuti, executive director at the Institute for Development of Economics and Finance (Indef), said in an interview.
Food consumption rises as households prepare meals for fasting and celebrations, while transportation demand increases as millions of Indonesians travel to their hometowns for the annual mudik homecoming tradition. Logistics services are essential in linking supply with rising consumer demand, ensuring goods reach markets across the archipelago.
Esther said targeted government stimulus could amplify the economic impact of the seasonal surge. Possible measures include food price subsidies to prevent excessive inflation, transportation discounts to support mobility, market operations to stabilize supply, and logistical assistance to keep distribution channels running smoothly.
"Ramadan can push Indonesia's economy to move faster if sector strategies and stimulus policies are implemented effectively," she said. "The impact should not only be temporary but support sustained growth."
The festive shopping season is particularly visible at Tanah Abang Market in Central Jakarta, the largest textile and garment wholesale hub in Southeast Asia. The sprawling complex has been crowded with shoppers searching for Eid clothing since the start of Ramadan.
Fahma, a resident of Depok in West Java, visited the market with family members to buy holiday outfits.
"We decided to shop now while we already have the money," she said. "If we wait, the items might be sold out or we might get busy with other things."
Market management expects traffic to intensify as Eid approaches. Hery Supriyatna, manager of Tanah Abang's Block A market, said visitor numbers could exceed 30,000 people per day in early March and potentially reach 40,000 to 45,000 daily in the two weeks leading up to the holiday, based on last year's trend.
The Indonesian Shopping Center Management Association (APPBI) estimates mall visits during Ramadan and Idulfitri 2026 will increase by 10-15 percent compared with the same period last year.
"Ramadan and Eid are peak seasons for the retail industry," APPBI chairman Alphonzus Widjaja said, stating the period is particularly important at a time when overall economic growth remains moderate.
To attract more visitors, malls and retailers are launching themed promotions, Ramadan decorations, and cultural events ranging from music performances to art exhibitions.
Government policy is also helping drive economic momentum during the holiday season. Authorities have rolled out a series of transportation fare discounts across rail, sea and air travel to encourage mobility.
Chief Economic Affairs Minister Airlangga Hartarto said the program includes a 30% discount on train tickets, similar reductions for state shipping operator Pelni and airfare discounts of around 17-18% for domestic economy-class flights.
The government is also allocating around Rp 55 trillion ($3.5 billion) in holiday bonuses for civil servants, military personnel, police officers, and pensioners while introducing flexible work policies to support travel around the Eid period.
Finance Minister Purbaya Yudhi Sadewa said these measures, combined with accelerated government spending and seasonal consumption, could push Indonesia's economic growth in the first quarter of 2026 toward 6%.
Source: https://jakartaglobe.id/business/ramadan-shopping-season-fuels-retail-travel-and-food-deman