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"The Number of Travelers Dropped by 24 Percent, Evidence of Freefalling Purchasing Power, Economists Provide These 5 Recommendations"

Economist and Public Policy Expert from UPN Veteran Jakarta, Achmad Nur Hidayat, provided five recommendations following the decline in the number of travelers, which reflects the paralysis of public purchasing power during the Eid al-Fitr moment in 2025.

"To prevent a deflationary spiral and deeper imbalances, the government needs to design policies that are immediate, targeted, and sustainable. First, inclusive transportation subsidies. Subsidies should not only focus on air transportation," said Achmad Nur to inilah.com in Jakarta, quoted Thursday (27/3/2025).

"The government, he continued, must allocate a budget to reduce the prices of intercity bus tickets, economy trains, and sea transportation. The discount or voucher scheme for homecoming for low-income communities needs to be expanded, with accurate data verification through the integration of population systems."  

The second is the waiver of toll fees and fuel assistance. The toll exemption during the homecoming period will reduce the economic burden on travelers using private vehicles. In addition, fuel subsidies for public transportation, he said, can prevent ticket prices from rising, which usually spike ahead of Eid.  

"Third, the protection of labor and MSMEs. The government needs to strengthen social protection programs for workers vulnerable to layoffs, such as the expansion of the pre-employment card program or conditional cash assistance. For MSMEs, low-cost financing incentives and digital marketing assistance can help them survive amid declining demand," he said.

Fourth, namely the equitable distribution of digital infrastructure. Achmad stated that the digital transition must be accompanied by the acceleration of internet infrastructure development in underdeveloped areas, financial literacy training, and incentives for MSMEs that engage in digital transactions. 
"Without this, the claim for financial inclusion will only be jargon," he added.

The last recommendation is more effective cross-sector coordination. Achmad mentioned that the government needs to involve local governments, the private sector, and civil society in designing the mudik policy.

"For example, collaboration with navigation applications to provide real-time traffic information or collaboration with e-commerce platforms to promote local MSME products," he emphasized.

Previously, the Ministry of Transportation (Kemenhub) projected the number of travelers during Eid 2025 to drop by 24 percent compared to last year.

The Transportation Policy Agency of the Ministry of Transportation recorded that the total number of travelers in 2025 is likely to be only 146.48 million people. This is significantly lower compared to the previous year, which reached 193.6 million travelers.

"Indeed, the potential movement of the community during the Eid homecoming this year (2025) has decreased compared to last year," said the Head of the Bureau of Communication and Public Information of the Ministry of Transportation, Budi Rahardjo, on Saturday (22/3/2025).

"What is the reason? Budi evaded, saying it is not the Ministry of Transportation's domain to discuss it. Perhaps he is reluctant to mention that the decline in purchasing power makes the migrants living in Jakarta unwilling to return to their hometowns. Once again, it's about the contents of their pockets." 

Source Inilah.com

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