Eid celebrations in Indonesia and India face economic and political challenges
The usual festive mood of Eid ul-Fitr holiday to mark the end of the Islamic holy month of Ramadan has been subdued in Indonesia this year as people grapple with soaring prices for food, clothing and essential goods.
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Consumer spending ahead of the biggest religious holiday for Muslims, which was celebrated on Sunday in Indonesia, has declined compared to the previous year, with a predicted slowdown in cash circulation due to fewer travellers.
Each year in Indonesia, nearly three-quarters of the world's most populous Muslim-majority country travel for the annual homecoming known locally as mudik that is always welcomed with excitement.
People pour out of major cities to return to villages to celebrate the holiday with prayers, feasts and family gatherings. Flights are overbooked and anxious relatives weighed down with boxes of gifts form long queues at bus and train stations for the journey.
But this year the Transportation Ministry said 146 million people travelled for Eid, a 24 per cent drop from last year's 194 million travellers.
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The Indonesian Chamber of Commerce and Industry projects that money circulation during Eid will reach 137.97 trillion rupiah (US$8.33 billion), down from 157.3 trillion last year. The weakening purchasing power is also reflected in Bank Indonesia's Consumer Confidence Index which dipped to 126.4 in February from 127.2 in January.
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