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Eid homecoming economy: Kadin forecasts Rp 157 trillion turnover in 2024

Jakarta Globe - March 29, 2024

Monique Handa Shafira, Jakarta – The Indonesian Chamber of Commerce and Industry (Kadin) projects that the financial turnover during the 2024 Eid al-Fitr holiday period will reach Rp 157.3 trillion ($9.92 billion) with over 190 million people expected to travel for Eid homecoming.

Sarman Simanjorang, Vice Chairman of Kadin Indonesia for Regional Autonomy Development, said this projection stems from the 193.6 million travelers, equivalent to 48.4 million families. Based on an average of Rp 3.25 million per family, the total turnover is estimated at Rp 157.3 trillion.

"This projection may even be conservative as we have opted for a moderate approach. The financial circulation is expected to permeate various sectors including retail, fashion, food and beverage, fuel, land transportation, sea transportation, and air transportation," said Sarman in a released statement on Thursday.

Furthermore, it will impact the tourism sector encompassing hotels, motels, villas, restaurants, cafes, mini-markets, various stalls, shops, tourist destinations, amusement parks, regional specialty food SMEs, souvenirs, batik, fabrics, and other flagship products.

Traditionally, during Eid, Indonesians embark on journeys back to their hometowns to reunite with family and loved ones. According to the Ministry of Transportation, an estimated 193.6 million individuals are anticipated to undertake these journeys this year, representing 71.7 percent of the country's total population. This marks a significant increase of approximately 50 percent compared to last year's exodus.

Sarman emphasized that this financial turnover would be dispersed throughout Indonesia, particularly in areas that serve as primary Eid destinations such as Central Java, East Java, West Java, Yogyakarta, Banten, and the Greater Jakarta area, estimated to comprise 62 percent of the population. The remaining portion will be distributed across Sumatra, Kalimantan, Bali, West Nusa Tenggara (NTB), East Nusa Tenggara (NTT), Sulawesi, Maluku, and Papua.

Moreover, this circulation of funds is anticipated to stimulate national economic growth in the first quarter of 2024, providing initial momentum toward achieving the targeted economic growth of 5 percent for the year.

"This financial circulation will also bolster local revenues in each destination area through hotel taxes, restaurant taxes, cafe taxes, tourist entrance fees, and other contributions during this Eid holiday season," Sarman elaborated.

Source: https://jakartaglobe.id/business/eid-homecoming-economy-kadin-forecasts-rp-157-trillion-turnover-in-202