Public Purchasing Power Declines During Eid, APINDO Kaltara Explains
Wednesday, 02 April 2025
TARAKAN – Eid is typically associated with increased consumer spending, with traditions such as buying new clothes, traveling home for the holidays (mudik), and purchasing various necessities. However, this year, the purchasing power of the people in North Kalimantan (Kaltara) has seen a significant decline.
Anita Riawati, Secretary of the Regional Executive Board (DPD) of APINDO Kaltara, revealed that the purchasing power of Kaltara residents during this year's Eid celebrations has dropped compared to previous years.
“Visibly, the purchasing power of Kaltara’s people has decreased by around 40 to 60 percent. This year's Eid celebrations felt much simpler, far less festive than before,” Anita told Radar Tarakan on Wednesday (April 2).
This decline in purchasing power is attributed to the significant increase in the prices of basic necessities, such as onions, chilies, sugar, and others.
“For instance, the price of sugar surged to between IDR 20,000 and IDR 23,000 per kilogram, while the normal price is only around IDR 17,900,” she added.
Nevertheless, some business sectors have still experienced a slight increase, although not significantly. Most of this growth occurred in the sector of staple food needs.
“There was a modest increase of less than 10 percent in the demand for staple goods. People still needed to shop, even if in limited quantities,” she said.
Anita also highlighted the significant rise in air transportation ticket prices during the Eid period. This was largely due to the high number of residents working outside Kaltara returning to their hometowns.
“For example, airfare for the Tarakan–Sulawesi route reached as high as IDR 10 million. Flights were fully booked,” she noted.
The decline in purchasing power is becoming a growing concern, especially amid ongoing economic uncertainty that continues to influence consumer behavior.
Source: radartarakan.jawapos.com
