Economy of Sharing During Lebaran

KOMPAS/TOTOK WIJAYANTO

Customers pack clothing they have just purchased on Monday (28/5/2018) at Cipulir Market in South Jakarta, for shipping to regions across the country.

Lebaran is approaching and its effect is imminent. People are flocking to traditional markets to buy new clothes and the ingredients to make a variety of cookies.

Lebaran is a moment of triumph for Muslims after fasting an entire month. Culturally, Lebaran is a time for maintaining relationships, of gathering with relatives and friends.

Mudik (exodus) becomes a ritual ahead of Lebaran, even if the people’s journeys to their hometowns are not smooth. This is the result of millions of people traveling at the same time. Traffic jams will likely occur along the roads in northern Java. We hope that the new toll roads running west to the east across Java will help reduce the congestion that force people to spend many extra hours on the road.

Aside from forgiving each other, Lebaran is also a time for sharing: sharing with relatives who are in need or with other people that are not prosperous. Usually, those that are well off will give alms – infak, sedekah and zakat – during this holy month.

Household consumption generally increases during the fasting month of Ramadhan and sees a sharp rise close to Lebaran. As the government has decided to pay the Lebaran holiday bonus (THR) to state employees and pensioners in early June, it is hopes the people’s purchasing power will rise.

We will also see the flood of transfers from Indonesian migrant workers ahead of Idul Fitri in a show of care and attention to sharing joy with their parents, wives, husbands and children at home. This will also increase the purchasing power of people in the regions, particularly in areas from where the migrant workers hail, much of which are less prosperous than the rest of the nation.

The good news from this increased consumption is that spending would mostly occur in the regions. Lebaran is an occasion for people to show their success from working overseas or in a city after nearly a year. This show of success comes in various forms, such as the latest cellular phone, clothing, shoes, bag and motorbike or car models.

We hope this economy of sharing will also drive small and medium businesses in the regions. The increasing consumption is expected to drive the economy, which grew slowly in the past three years at around 5 percent. Perhaps, around this time, the inflation from increased public consumption should be appreciated because it is a sign of economic growth.

However, it should be acknowledged that several people have decided to take overseas vacations during the long holiday that government has set for almost two weeks. Our foreign exchange will be sucked up during their overseas travel.

These decisions to take vacations abroad should encourage all stakeholders to improve local tourist facilities and destinations. We often hear people’s comments that it is easier and cheaper to go on vacation overseas than to travel to domestic destinations outside Java.