"The government is encouraging increased demand and supply to support economic movement during the Eid holiday," Coordinating Minister for Economic Affairs Airlangga Hartarto noted in a statement on Monday.
Various programs have been prepared, starting with tourism programs during the Eid al-Fitr period, with an estimated 122.1 million trips expected during this year's Eid holiday period.
The government is also preparing incentives for the Value Added Tax Borne by the Government (PPN DTP), which is increased by six percent for transportation tickets, as well as a 20 percent toll rate discount for long-distance trips (Barrier Gate to Barrier Gate) on several toll roads on D-7 to D-4 Eid al-Fitr, and D+7 to D+8 Eid al-Fitr.
In addition, Hartarto highlighted that the government issued a policy of Religious Holiday Allowances (THR) provision for workers and laborers and Religious Holiday Bonuses for drivers and couriers on application-based transportation services paid no later than seven days before Eid al-Fitr.
The THR for central and regional civil servants and retirees should be disbursed two weeks before Eid al-Fitr. Additionally, national shopping programs include Friday Mubarak on February 28-March 28, 2025, with a transaction target of Rp75-77 trillion (US$4.4 billion-4.5 billion); BINA Lebaran on March 14-30, 2025, with a transaction target of Rp30 trillion (US$1.7 billion); and an online shopping campaign for Ramadan across all e-commerce platforms.
According to the minister, the government also monitors the dynamics of the global economy, including the new economic policies in the United States, such as tariffs.
Despite several countries facing increased recession risks, Hartarto ensured that Indonesia remains in a favorable economic position.
As per Bloomberg data in February 2025, Indonesia's recession probability is below five percent, significantly lower than other countries such as Mexico (38 percent), Canada (35 percent), and the United States (25 percent).
"We can maintain stability and competitiveness through a solid national economic foundation, diversification of trading partners, and strengthening downstreaming. Commitment and synergy from all parties are needed to build an inclusive, competitive, and sustainable economic fundamental," he remarked.
Throughout 2024, Hartarto said the national economy showed optimal resilience, with the gross domestic product (GDP) growth reaching 5.03 percent (yoy).
He noted that several provinces also showed rapid regional growth, such as West Papua and North Maluku, which grew by 20.8 percent and 13.73 percent, respectively, supported by the growth of the manufacturing and mining and excavation sectors.
Furthermore, the Consumer Confidence Index (CCI) in February 2025 stood at 126.4, the Manufacturing Purchasing Index was in the expansion zone at 53.6, and Indonesia still recorded deflation of 0.48 percent (mtm), primarily due to the electricity tariff discount program, with core components experiencing inflation of 0.25 percent (mtm).
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Translator: Bayu Saputra, Resinta Sulistiyandari
Editor: Arie Novarina
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