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IDEAS report: Growing economic disparity reflected in Indonesia's qurban economy

Jakarta Globe - June 13, 2024

Alfida Rizky Febrianna, Jakarta – The Institute for Demographic and Poverty Studies (IDEAS) projects Indonesia's potential qurban economy for 2024 to reach Rp 28.2 trillion ($1.7 billion), generated from 2.16 million qurban participants.

Middle-class participation has decreased, while upper-class participation has increased, highlighting growing economic disparity in Indonesia.

This projection represents an increase from the previous year's estimate of Rp 24.5 trillion, derived from 2.08 million qurban participants. This indicates an increase of approximately 80,000 participants in 2024.

"Among the 2.16 million Muslim families with high purchasing power who are potential qurban participants, the largest demand is for goats and sheep, approximately 1.21 million heads, followed by cattle and buffalo, around 587,000 heads," said IDEAS researcher Tira Mutiara on Thursday.

Assuming the weight of goats and sheep ranges from 20-80 kg with a carcass weight of 41 percent, and the weight of cattle and buffalo ranges from 250-750 kg with a carcass weight of 57 percent, the potential qurban economy in 2024 from around 1.79 million livestock is equivalent to 117,200 tons of meat.

"Although there is an overall increase, if we look at the data for Muslim communities potentially qurban goats and sheep weighing 20-40 kg per head, there is a decrease of about 7 percent from 734,000 to 709,000 participants. This group represents the middle class," Tira explained.

According to Tira, the current economic conditions, with many instances of layoffs and high unemployment, have caused a stagnation or significant decrease in income for the lower-middle class. Consequently, those who were able to perform qurban last year are now unable to do so this year due to these economic impacts.

"Contradictorily, we found an increase in qurban participants for cattle and buffalo weighing around 750 kg per head, predominantly from the wealthiest segment of society, rising about 21 percent from 63,900 to 77,600 participants," Tira noted.

Tira added that the decrease in middle-class qurban participants and the increase in the wealthiest qurban participants confirm the growing economic disparity in Indonesia.

Eid al-Adha, or the Festival of Sacrifice, is an important Islamic holiday celebrated worldwide. The central ritual of Eid al-Adha is the qurban, or the sacrifice of an animal such as a sheep, goat, cow, or camel. The sacrificial act is a form of worship and charity in Islam.

Source: https://jakartaglobe.id/business/ideas-report-growing-economic-disparity-reflected-in-indonesias-qurban-econom