Ramadan and Eid al-Fitr 2026 Consumption Supported by Middle-Class Groups

Mandiri Institute's latest analysis reveals a robust economic performance during the Ramadan and Eid al-Fitr 2026 period, with the middle class emerging as the primary engine of consumption growth. The Mandiri Spending Index recorded a healthy 2.9% increase compared to pre-Ramadan levels, a slight uptick from previous years, underscoring the resilience of domestic spending.

The data highlights a notable trend: the middle class's consumption surged by 4.1%, significantly outperforming both lower (2.1%) and upper (2.6%) income brackets. This indicates their strategic importance in maintaining the momentum of domestic consumption, especially during the festive 'THR' (holiday allowance) period. Chief Economist Bank Mandiri, Andry Asmoro, emphasized that the middle class's spending growth was 1.4 to 2 times higher than other groups, solidifying their role as key economic drivers.

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The middle class is the main driver of spending acceleration, especially during the THR period, thus contributing significantly to the strengthening of overall consumption.

Interestingly, the younger generation, particularly Gen Z, led the charge in consumption, with a 4.4% growth rate. This outpaced Millennials (3%) and Gen X (1.4%). This shift towards younger consumer power is reflected in spending patterns, which saw a dominant increase in non-essential categories such as fashion (6.4%), beauty care (4.9%), and electronics (4.7%). This contrasts with the previous year, where daily necessities saw the highest growth.

Asmoro attributes this surge in discretionary spending to increased public confidence. The willingness of consumers, especially the youth, to spend on non-essential items signals a positive outlook and a greater sense of economic security. This trend is a welcome sign for the retail and service sectors, suggesting a dynamic and evolving consumer landscape in Indonesia.

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The increase in this category reflects an increase in public confidence in making discretionary consumption during the Ramadan-Eid al-Fitr 2026 period.