The Indonesian government will limit travel during the peak period at the end of the Islamic fasting month of Ramadan to curb the spread of Covid-19.
Ramadan began on 12 April and will end on 12 May this year. Anyone travelling across cities and regions over 6-17 May, when many people visit their hometowns, will have to provide a valid printed exit-entry permit, the government said.
The decision was taken after Covid-19 infections surged during extended holidays such as Christmas and new year, human development and culture minister Muhadjir Effendy said.
The measure came as a surprise to some market participants, as the government previously issued a circular outlining the safety measures that would implemented in anticipation of higher passenger flow during the annual mudik mass exodus to hometowns at the end of Ramadan.
The latest announcement may result in travel plans brought forward before 6 May, supporting demand, some traders said. Gasoline traders usually plan for a peak in demand as driving activity increases during mudik.
Indonesia's state-owned refiner Pertamina typically starts to stock up a month before Ramadan. Pre-Covid, gasoline import volumes rose by 30pc from March 2019 to 400,000 b/d in April 2019, a month before Ramadan started, according to customs data.
Indonesia's President Joko Widodo had imposed a ban on mudik travel last year to curb the spread of Covid-19.
