People's Consumption Patterns During Ramadan Are Believed To Be Able To Spur Economic Progress

Shopping for Ramadan (Photo: ANTARA)

JAKARTA - The pattern of public consumption during Ramadan can certainly be able to spur economic progress, said Hasanuddin University Economic Observer Prof Marzuki Dea. Even though prices for food commodities or basic needs have increased, the consumption pattern of the people of South Sulawesi is considered to continue to increase during Ramadan.

"I think people's spending behavior ahead of Eid al-Fitr is indeed increasing, although there have been some increases in the prices of basic commodities for the community," he said in Makassar, Saturday.

Thus, said Marzuki, the pattern will have an impact on the determinants of economic progress in general, especially in the regions at the district and provincial levels.

According to him, the consumption factor will still be the main determinant of the economic structure from the demand side, which has a quite significant share, averaging over 50-60 percent.

Quoted from ANTARA, a number of shopping centers in Makassar City are now being filled with residents who want to buy Eid necessities. While many traditional markets are visited by buyers, one of them is people who want to buy ingredients for Eid cakes.

"This Ramadan will still have a fairly good impact, although there have been several increases in commodity prices for public needs," he said.

"From the consumption side, I think the growth will increase, although it is relatively small," he added.

The share of consumption growth sources in the fourth quarter of 2021 reached 2.09 percent, it is estimated that it will increase to a share of 2.50 percent. So that the economic growth of South Sulawesi (year of year) can reach 8 percent.

Meanwhile, Unhas economist Mursalim Nohong mentioned several momentums that contributed to the increase in public spending, namely the distribution of BST (Cash Social Assistance) and Holiday Allowance (THR) for ASN.

"People's longing for a family atmosphere at the moment of Eid after two years of delay will be an indicator of strengthening public spending," he said.

Bank Indonesia (BI) estimates that the need for cash during Ramadan and Eid in 2022 will reach Rp 175.3 trillion. This prediction increased by 13.4 percent from last year's realization.

The achievement of the figure which reached Rp. 175.3 trillion by taking into account macroeconomic assumptions, trends in realization, and the government's program for the disbursement of cash assistance.

"The 2022 Eid holiday will be a phenomenon in itself which will be marked by increased spending and consumption," said Mursalim.