Govt Admits Mudik Ban May Affect Economy in Villages

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Laila Afifa

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  • TEMPO.CO, Jakarta - Coordinating Minister for Economy Airlangga Hartarto assessed that the ban on annual mass exodus or locally known mudik for this year’s Ramadan and Eid al-Fitr holiday season will slightly affect the economy. Moreover, rural regions often rely on the holiday season to boost their economic growth.

    However, Airlangga explained the government has massively pushed for labor-intensive industries and dispensed village funds.

    “So the village funds are expected to maintain the people’s purchasing power and cash flow in rural and district areas,” he said during a video conference on Wednesday, April 22.

    President Joko “Jokowi” Widodo decided to prohibit this year's Eid exodus as a part of COVID-19 containment efforts.

    According to Coordinating Minister for Maritime and Investment Affairs, Luhut Pandjaitan, one of the main factors for making that decision is the fact that 24 percent of the public still insisted on going to their hometown despite the government's appeal. The number, Luhut said, was based on a study done by the Transportation Ministry.

    “The ban on mudik is effective on Friday, April 24, 2020. The policy also stipulates sanctions, but it will be imposed starting May 7,” the minister said via teleconference after a limited meeting with President Jokowi on Tuesday, April 21.

    Earlier reported, the Transportation Ministry is targeting to issue the technical rule for the ban tomorrow, April 23.

    EKO WAHYUDI | BISNIS