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Economic Activity Diminishes During Eid, Making Consumption Growth More Challenging

Lebaran in Indonesia typically serves as a moment for national economic equalization, driven by high community mobility and an increase in the circulation of money. However, the atmosphere in 2025 presents a different scenario, even in the absence of the Covid-19 pandemic that disrupted the sacred tradition of Lebaran gatherings in previous years. 

The relatively quiet travel during the extended holiday period of at least eight days highlights a contrasting aspect of weakened mobility and economic activity among the populace. The Ministry of Transportation reported a 4.69 percent decrease in movement during the 2025 Lebaran period compared to the previous year. The number of intra- and interprovincial trips during Lebaran 2025 was recorded at 154.6 million, a decline from the 162.2 million trips made in 2024. 

This reduction in travel has also affected fuel consumption. Data from the Downstream Oil and Gas Regulatory Agency (BPH Migas) indicates that, compared to 2024, fuel consumption in the two weeks before and after Lebaran 2025 has decreased. Specifically, gasoline consumption fell by 6 percent, aviation fuel decreased by 4 percent, and kerosene saw a decline of 9 percent. Conversely, the distribution of diesel fuel for machinery increased by 11 percent. 

These findings reinforce projections of a decline in money circulation during the Lebaran period. Sarman Simanjorang, Vice Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for Regional Autonomy Development, noted that if the money circulation during Idul Fitri 2024 was estimated at Rp 157.3 trillion, the projection for Idul Fitri 2025 is anticipated to reach Rp 137.97 trillion. This estimate is based on the assumption that the number of travelers this year will be only 146.48 million (Kompas, 18/3/2025). 

Changing Consumption Patterns 

Recently, a research team from Bank Mandiri analyzed these seasonal consumption indicators in their April 2025 publication titled "Indonesian Consumers: Facing Challenges." This publication examined consumer habits during Ramadan and Lebaran, savings rates, and evolving consumption patterns. 

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Tag: Community Mobility National Economic Tradition Of Lebaran