Indonesia marked Eid al-Fitr with a melancholic tone this year as inflation led to higher costs for daily necessities, including food and clothing, which overshadowed the traditional celebratory atmosphere following Ramadan. A dip in consumer spending marks a shift from the usual jubilant activities tied to the Muslim-majority country’s largest religious holiday, which fell on a Sunday.
Typically, this period witnesses around three-quarters of Indonesia’s population embarking on the enthusiastic journey of “mudik” — the cherished tradition of returning home to reunite with family for Eid festivities marked by communal prayers and vibrant gatherings. However, this year saw a 24% decline, with the Ministry of Transportation reporting only 146 million travelers compared to last year’s 194 million.
The Indonesian National Chamber of Commerce and Industry has indicated a financial downturn during Eid, forecasting a monetary circulation of approximately 137.97 trillion rupiah ($8.33 billion), which is lower than the previous year’s 157.3 trillion. This economic strain is further emphasized by a drop in Bank Indonesia’s Consumer Confidence Index, which slid to 126.4 in February from January’s 127.2.
Bhima Yudistira, leader of the Center for Economic and Law Studies (Celios), highlighted the concerning economic trends. He pointed out that economic challenges, coupled with currency depreciation and widespread manufacturing layoffs, have significantly undermined both corporate profits and workers’ salaries. This has resulted in reduced consumer expenditures, casting a shadow over the usually lively holiday season.
Yudistira remarked that economic adversities have overwhelmed the festive vibe, compelling households to prioritize their basic needs over holiday revelry. Household spending traditionally acts as a significant component of Indonesia’s GDP, attributing over half of the total, and driving a 5.11% growth last year. However, projections for consumer spending in 2025 are less optimistic, Yudistira noted.
Despite this, the Indonesian government remains hopeful that the energy of Ramadan and Eid could still buttress economic growth through the first quarter of 2025. Economic Affairs Minister Airlangga Hartarto stated that Eid usually stimulates the economy by boosting spending.
To invigorate economic activity, the government has rolled out a series of initiatives, such as discounts on flights and tolls, nationwide online shopping events, direct cash transfers to support 16 million households, reduced electricity costs for low usage customers, and tax relief for labor-intensive industries. “Through these efforts, we aim to sustain consumer spending and maintain economic stability,” Hartarto elaborated.
Economic strains have made personal impacts, as recounted by Endang Trisilowati, a mother of four, who shared that her family had to significantly reduce their spending on holiday celebrations. She remembered times when multiple dishes filled their table, and neighbors joined in, but current constraints limit her to providing only a simple meal for her immediate family. “Many are just focusing on ensuring there’s food, but it feels less spirited,” she admitted.
Meanwhile, in India, Eid celebrations were a blend of joyous assemblies and tense undercurrents as Muslims engaged in prayer, family get-togethers, and festive dinners amidst an atmosphere charged with societal tension. The backdrop of vilification from fervent Hindu nationalists shadows the occasion. Additionally, Muslim groups are pushing back against proposed legal reforms concerning land endowments, which they view as biased, although the government argues it aims to eliminate corruption within Muslim land trusts.
As the largest minority, making up 14% of India’s 1.4 billion population, Muslims face continuous challenges in a Hindu-dominant society. Prime Minister Narendra Modi’s party has introduced “Saugat-e-Modi,” a campaign anticipated to distribute food and clothing to over 3 million underprivileged Muslims for Eid.
In New Delhi, the grandeur of Eid unfolded at the Jama Masjid, one of India’s largest mosques, where thousands gathered to perform Eid prayers. Families, steeped in the spirit of the holiday, greeted each other with warmth early Monday morning. “This is a day meant for kindness and extending goodwill. Even if you encounter an adversary, extend love,” suggested Mohammed Nooruddin, an 18-year-old student.