Cautious consumers in Indonesia scale back Hari Raya spending as uncertainty weighs

Most have opted to invest or save instead. Read more at straitstimes.com.

JAKARTA – The annual spending surge during Hari Raya, typically supported by the mass exodus to hometowns (mudik) and holiday allowance (THR) payouts, may lose momentum in 2026 as weaker mobility and more cautious households dampen consumption.

The Transportation Ministry estimates that only 143.91 million people will travel during the Hari Raya exodus in 2026, a 6.55 per cent decline from the 154 million recorded in 2025.

At the same time, the disbursement of THR, another key pillar of the Ramadan economy, is progressing but remains uneven across worker groups.

A survey by Litbang Kompas, the research arm of Kompas daily, conducted from March 6 to 10, showed that only 27 per cent of workers, primarily civil servants (ASN), had received THR at the time. Meanwhile, more than a third of private-sector respondents had yet to receive it, and 23.4 per cent had not been paid despite being informed they would.

Current regulations stipulate that THR must be paid no later than seven days before Hari Raya, which is expected to fall on either March 20 or March 21.

The delay has affected Mr Baihaqi, a Gen Z start-up employee, who has yet to receive his allowance after the deadline.