The Indonesian Chamber of Commerce and Industry (Kadin) projects that money turnover during Eid al-Fitr this year will reach IDR 157.3 trillion. This is based on a moderate calculation of the increase in the number of travelers, which is estimated to reach 193.6 million people.
The value of IDR 157.3 trillion was obtained from the assumption that 193.6 million people were returning home, each family numbering 4 people. So, the number of homecoming travelers became 48.4 million families and each family brought an average of IDR 3,250,000.
“This number still has the potential to increase, because we are multiplying the minimum or moderate number,” said Deputy Chairperson of the Indonesian Chamber of Commerce and Industry for Regional Autonomy Development Sarman Simanjorang in a written statement, Thursday (28/3).
The circulation of money will spread across various business sectors such as retail, fashion, food and beverage, fuel, land transportation, sea transportation and air transportation. The tourism sector such as hotels, motels, villas, restaurants, cafes, tourist destinations, and regional souvenirs will also absorb this money circulation.
The circulation of money during Ramadan and Eid al-Fitr is also considered to be very significant in increasing economic growth in the first quarter of 2024. Sarman believes that this can be capital for Indonesia to achieve its growth target throughout 2024, namely in the range of 5% or higher.
“The circulation of money will also increase Regional Original Income (PAD) in each homecoming destination area, which comes from taxes on hotels, restaurants, cafes, fees for entering tourist destinations and others during the Eid al-Fitr holiday season,” he explained.
Also read: Kadin: Money Flowing to Homecoming Destination Cities Could Reach Tens of Trillions
Regional governments are also expected to help smooth the flow of homecoming and ensure that entrepreneurs in destination areas do not raise prices too high and make travelers reluctant to spend their money. Such as entrance fees to tourist locations, hotel/lodging fees, food/drink prices and prices of regional specialties or souvenirs, it is hoped that there will be no increases that will burden consumers.
Business actors in homecoming destination areas must be able to create memorable and enjoyable services so that homecoming travelers do not hesitate to spend their money during the holidays. It is hoped that the local government can provide security guarantees and smooth traffic, especially spilled markets which often take up the main road, so that during the Eid holiday it can be controlled.
Money from Migrant Workers
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Apart from the money circulation of homecoming travelers, several regions will also get additional money circulation from migrant workers sending from abroad or remittances which also experience predicted growth of around 25-30% during the month of Ramadan and Eid al-Fitr 1445 H.
Remittances are sent by migrant workers to their families in their homeland in preparation for Eid al-Fitr celebrations from various countries such as Saudi Arabia, China, Japan, Hong Kong, South Korea, Taiwan, Malaysia and several other countries. The ten provinces that send the most migrant workers and will receive remittances include East Java, Central Java, West Java, West Nusa Tenggara, Lampung, Bali, North Sumatra, Banten, Yogyakarta and DKI Jakarta, which this year is estimated at IDR 1.5 trillion from 274,965 workers. migrant.
In the midst of the pressure of uncertain global economic conditions, the momentum of Eid al-Fitr this year is very strategic in boosting national economic growth and increasing economic activity throughout the country. The culture of going home to celebrate Eid al-Fitr with the family in one’s hometown has become the largest means of circulating money in Indonesia, which is estimated to reach 25% every year.
“This turnaround will be able to increase household consumption, stimulate the regional economy and make a significant contribution to national economic growth. Our hope is that this year’s homecoming will run smoothly, safely, happily, full of memories, the homecoming will be able to shop and travel while enjoying a variety of culinary delights and MSME products,” concluded Sarman.
(Z-9)
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