Livestock sellers in Depok, Indonesia, report a decline in customer numbers and animal sales ahead of the June 2024 Eid al-Adha celebrations [1, 2].
The downturn highlights how geopolitical instability in the Middle East can trigger economic ripple effects that impact local traditions and small-scale commerce in Southeast Asia.
Sellers in the West Java city of Depok have seen a drop in buyers as the Indonesian rupiah falls to record lows [1, 2]. This currency devaluation is linked to the ongoing conflict between the U.S. and Iran, which has destabilized regional markets [1, 2, 3].
The conflict has also pushed up fuel prices, adding further pressure to the cost of living [1, 2, 3]. Because transportation and logistics costs are tied to fuel, the price of moving livestock to markets has increased, further squeezing the purchasing power of consumers [1, 2, 3].
Eid al-Adha is a significant period for livestock traders, as the tradition of animal sacrifice creates a surge in demand for cattle and goats. However, the combination of a weak currency and expensive fuel has made these traditional purchases less affordable for many families in Depok [1, 2].
Local traders said the economic strain is directly tied to the volatile energy market caused by the U.S.-Iran war [1, 2, 3]. While livestock is a central part of the holiday, the financial burden on the average consumer has led to a visible decrease in market activity [1, 2].
“Livestock sellers in Depok report fewer customers for Eid al-Adha.”
This situation illustrates the vulnerability of emerging markets to external geopolitical shocks. When a conflict involving major energy producers or global superpowers occurs, the resulting volatility in oil prices and currency exchange rates can immediately degrade the disposable income of citizens in non-combatant nations, disrupting local economies and cultural practices.
