Demand for cash expected to rise during Ramadan
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Demand for cash in Indonesia is expected to rise by 14.5 percent to Rp160.5 trillion during Ramadan and post-fasting holiday of Lebaran this year, a central bank official said here on Monday.
“There are several factors that would make cash demand to increase this year,” Bank Indonesias executive director for money circulation management, Suhaedi, said.
The forecast for the cash demand growth of 14.5 percent this year is in line with the trend in the growth of money in circulation in the community in the Ramadan-Lebaran period which has always increased by 14 percent every year for the past nine years, he said.
Suhaedi said he predicted demand for cash would increase because of economic recovery, the disbursement of the 13th and 14th salaries of civil servants, police and military members and a longer period of the Lebaran holiday which this year will happen in concurrence with the school holiday.
He said the central bank has prepared Rp160.5 trillion to meet the need of cash money and spread its supply across BI branches in the provinces.
“Almost 100 percent of the cash money are newly printed bills,” he said.
Bank Indonesia would send 26 of the money supply to Jakarta, 33 percent to Java, 20 percent to Sumatra, 7 percent to Kalimantan and 11 percent to Sulawesi, Maluku, Papua, Bali and Nusa Tenggara.
Starting today Bank Indonesia Jakarta started opening service for people wishing to exchange their money for the new bills at the National Monument square in Central Jakarta.
“Almost 100 percent of the cash money are newly printed bills,”
On June 10, 20 banks would help Bank Indonesia in carrying out the service at the square.
“Besides Monas (National Monument) 200 branches of banks in Jakarta will also open the service,” he said.
Bank Indonesias executive director for payment system Bramudija Hadinoto said during Ramadan especially from June 6 to July 1 the operational hours for non-cash payment system would not change.
On July 4, however Bank Indonesia would only conduct limited operations for transfer of clearing funds.
“It is limited because no debt clearing is to be carried out especially in Jakarta, Surabaya, Medang and Bandung while other cities it still continues,” he said.
Regarding real time gross settlements (RTGS) he said Bank Indonesia would impose a new rule as of July 1, 2016 in which it would reduce the limit of the nominal value of RTGS from Rp500 million and over per instruction to over Rp100 million per instruction.
Questions & Answers
Q.What is the expected increase in cash demand during Ramadan and Lebaran this year?
What is the expected increase in cash demand during Ramadan and Lebaran this year?
Demand for cash in Indonesia is predicted to rise by 14.5 percent, reaching a total of Rp160.5 trillion during this period. This growth aligns with the consistent annual increase observed over the last nine years.
Q.Which factors are contributing to the anticipated rise in cash demand?
Which factors are contributing to the anticipated rise in cash demand?
The expected increase is due to economic recovery, the payout of the 13th and 14th salaries for civil servants, police, and military personnel. A longer Lebaran holiday coinciding with school holidays also plays a part.
Q.How will the newly printed cash be distributed across Indonesia?
How will the newly printed cash be distributed across Indonesia?
Bank Indonesia will send 26% of the money supply to Jakarta, 33% to Java, and 20% to Sumatra. The remaining 21% will be distributed to Kalimantan, Sulawesi, Maluku, Papua, Bali, and Nusa Tenggara.
Q.Are there any changes to non-cash payment system operations during Ramadan?
Are there any changes to non-cash payment system operations during Ramadan?
No, the operational hours for non-cash payment systems will remain unchanged from June 6 to July 1. However, on July 4, Bank Indonesia will conduct limited operations for the transfer of clearing funds.
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