Unair Economist: The Month Of Ramadan Becomes A Moment Of Increasing The Community Economy

Illustration. (Photo: Doc. Antara)

JAKARTA - Airlangga University Surabaya economist, Shochrul Rohmatul Ajija, SE., ME.c., said that the month of Ramadan became a moment of improvement in the economy of the people as seen from the proliferation of ultra micro traders who peddled their wares just before breaking the fast.

"The purchasing power of the people in the month of Ramadan tends to rise and be distributed. So people who tend to be rich will divest so that people in the mass group (poor) get additional income and purchasing power increases," he said in Surabaya, East Java, quoted from Antara, Friday 24 March.

Not only that, psychological aspects and beliefs in religion, he continued, also affect this. Many residents feel that Ramadan is the right time to give alms and spend their money, so that demand or demand tends to increase.

The Unair economist emphasized that it was the public's request, which was captured by the market, so that a new ultra micro-enterprises emerged.

Shochrul said this also made entrepreneurs increase their supply or offering of goods to meet the public's demands. The increase finally made the balance point (equilibrium, red) also change.

"Many people have planned their income to face the month of Ramadan. There are some people who choose to make Eid al-Fitr savings, if in the village there is Eid social gathering. That's money that was deliberately collected for Ramadan and Eid al-Fitr," added the lecturer at the Department of Economic Development.

In addition, traders are asked to act rationally and understand the market, so that they can stock goods efficiently.

He also advised not to glorify business prospects in the month of Ramadan to make ultra micro traders just look for capital by debt.

"The financing scheme (debt) for sporadic businesses like this is dangerous because not a few have run out of Eid to bear a lot of debt. For reasons of fraud, miscalculation and non-profit merchandise," he said.