National holidays boost economic activity primarily by encouraging a concentrated period of consumer spending on a wide range of goods and services. The time off work and a festive atmosphere motivate people to spend more on travel, leisure, and retail.

Particularly travel and tourism drive economic activity during a national holiday. Many people use the long weekend to take a trip, whether to visit family or for a short getaway. This surge in movement directly benefits airlines, trains, buses, hotels, gas stations, restaurants, and local businesses in tourist destinations.

Also, retail and consumer spending tend to peak, benefitting supermarkets, retailers and online stores or e-commerce platforms.

The Significance of Domestic Tourism for the National Economy

The importance of domestic tourism shouldn't be underestimated as it has a massive multiplier effect on other domestic industries/sectors due to the demand for various products and services that is generated by (domestic) tourism. This becomes clear if we take a look at some data.

Indonesia's Statistical Agency (BPS) noted that there were a total of 1.02 billion domestic tourism trips made in full-2024. BPS defines a domestic tourist trip as: a travel made by Indonesian residents outside their usual environment (but still within the territory of Indonesia), voluntarily, for less than 12 months but more than six hours, and not to work (obtain income) or go to school regularly.



Data from BPS also show that, on average, a total of IDR 2.31 million (approx. USD $145) is spent per trip. And so, if we then multiply USD $145 by 1.02 billion (trips), it means that domestic tourism is estimated to be worth around USD $147.9 billion in a year (money that is rotated in the national economy).

This is significantly more than what foreign visitor arrivals inject into the Indonesian economy. In 2024, foreign tourists brought USD $12.63 billion with them when they went on holiday in Indonesia. However, the difference is that foreign money is newly injected into the Indonesian economy, whereas in the case of domestic tourism the money is being rotated only in Indonesian society.

This could actually be a motive behind the fact that the Indonesian government has been allowing more holidays (cuti bersama) in recent years. Whereas in the past a holiday like Waisak (a Buddhist festival commemorating the birth, enlightenment, and death of Buddha) was celebrated on one single day (a one-day national holiday), it is now a two-day holiday, making it more attractive for Indonesian families to go on holiday for a few days (typically adding the weekend). And so, these ‘collective leave days’ are likely part of government strategy to boost national economic growth.

In mid-September 2025, a Joint Decree (SKB) outlined the national public holidays for 2026. The decision stems from three ministers, namely the Minister of Religious Affairs, the Minister of Administrative and Bureaucratic Reform, and the Minister of Manpower. The table below presents the official national holidays of Indonesia for the year 2026:

National Holidays of Indonesia in 2026:

Date Holiday Remark
1 January
New Year's Day First day of the year on the modern Gregorian calendar
16 January Isra Mi'raj Nabi Muhammad Ascension of the Islamic Prophet Muhammad
16 February Cuti Bersama Collective leave day
17 February Tahun Baru Imlek Chinese New Year
18 March Cuti Bersama Collective leave day
19 March Hari Raya Nyepi New Year in Balinese Hinduism ('Day of Silence')
20 March Cuti Bersama Collective leave day
21-22 March Idul Fitri Islamic celebration that marks the end of the holy fasting month of Ramadan
23 March Cuti Bersama Collective leave day
24 March Cuti Bersama Collective leave day
3 April Good Friday Commemorating the crucifixion and death of Jesus Christ
5 April Easter Resurrection of Jesus
1 May International Labor Day Celebration of laborers and the working classes
14 May Ascension of Jesus Ascension of Jesus Christ 40 days after His resurrection
15 May Cuti Bersama Collective leave day
27 May Idul Adha Muslim day of sacrifice
28 May Cuti Bersama Collective leave day
31 May Waisak Buddha's Birthday
1 June Pancasila Day Commemorating the official, foundational philosophical and political theory of Indonesia
16 June Tahun Baru Hijriyah Islamic New Year
17 August Independence Day Commemorating Soekarno-Hatta's Proclamation on 17 August 1945
25 August Maulid Nabi Muhammad Birthday of the Islamic Prophet Muhammad
24 December Cuti Bersama Collective leave day
25 December Christmas Commemorating the birth of Jesus Christ

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