Mudik Will Boost Economy in the Second Quarter of 2022

The government allows people to go home for Eid this year. The Ministry of Transportation (Kemenhub) projects that as many as 85 million people will go home this year. The main destination area for is Java, mostly using land transportation (47% by private vehicles and 31% using public transportation).

“Mudik will boost demand, ranging from transportation services, apparel, food and beverage, hotels to telecommunications. Moreover, full THR payments for private employees can trigger higher growth in household consumption,” said Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira Adhinegara. On the other hand, Bhima projects that the flow of urbanization will also occur after going home this year. The reason is, many companies or offices are currently starting to be active again and opening job vacancies.