Leisure Spending Increases Post-Pandemic

The Central Statistics Agency (BPS) report states that household consumption expenditure (PKRT) and gross fixed capital formation (PMTB) constitute the majority of Indonesia's Gross Domestic Product (GDP).

BPS data shows that these two components contribute approximately 82.51% to the national economy. However, household consumption consistently accounts for more than half of the national economy.

"In 2023, its contribution reached 53.18%," wrote BPS in the *Indonesia Economic Report 2024*, Friday (20/9/2024).

This percentage increased by 1.3 percentage points compared to 2022, which recorded only 51.88%.

Based on their nature, PKRT can be divided into two categories: leisure and non-leisure spending. Leisure refers to recreational activities or activities outside of routine work or productive activities.

BPS explains that the leisure category includes transportation and communication; and restaurants and hotels. The non-leisure category includes food and beverages (excluding restaurants); clothing, footwear, and their maintenance services; health and education; and others.

The trend shows that leisure spending increased significantly after the Covid-19 pandemic (2020-2021).

In 2020, leisure spending growth was recorded at -9.17% of total household consumption, while non-leisure spending was 0.79%. At that time, PKRT was also recorded at -2.63%.

In 2021, leisure spending growth gradually improved to 2.95%, while non-leisure spending reached 1.57%. PKRT was 2.01%.

Preliminary data for 2022 shows a surge in leisure spending growth to 8.59%, while non-leisure spending was 3.2%. PKRT was recorded at 4.94%.

Very preliminary data for 2023 shows leisure spending decreased to 7.26%, while non-leisure spending reached 3.6%. PKRT was 4.82%.

"Both expenditure groups have improved over time, in line with the recovery of the PKRT component after being impacted by the pandemic," wrote BPS in its report.

(See also: Household Consumption Contributes 54% to Indonesia's GDP in Q2 2024)