Monique Handa Shafira, Jakarta – The central bank has allocated funds amounting to Rp 260 trillion ($16.63 billion) ahead of major celebrations, including the 2024 elections, Ramadan, and Eid al-Fitr 2024.
Deputy Governor of Bank Indonesia (BI), Doni Primato Joewono, said that this amount is 35 percent larger than the funds allocated by BI for Ramadan and Eid al-Fitr 2023.
"In the upcoming months of January, February, March, and April, there are three significant events, the elections and Ramadan and Eid. It could be higher, around 35 percent more than last year, with an estimate above Rp 260 trillion," said Doni during a press conference in Central Jakarta, on Wednesday.
Employers usually give their employees a yearly bonus (THR) about a week before Eid, which will likely fall on April 9. A month before Eid or during Ramadan, Indonesians are expected to spend more, increasing the demand for money and domestic consumption.
Meanwhile, the Center of Reform on Economics (CORE) Indonesia projects that the implementation of the 2024 elections will contribute approximately Rp 294.5 trillion to the Gross Domestic Product (GDP).
Doni said the significant funds were also set aside anticipating a robust purchasing power ahead of the festive season. Notably, cash withdrawals during the 2023 end-of-year holiday season amounted to Rp 130 trillion, reflecting a 10.7 percent surge compared to the preceding year.
"(Cash withdrawal during the 2023 end-of-year holiday season) is 104 percent higher than our initial estimate. This is unprecedented. Typically, our projections are surpassed, but this time it exceeded our expectations," he added.
In terms of rupiah management, the currency in circulation (UYD) witnessed a 7.33 percent year-on-year (yoy) increase in December 2023, reaching Rp 1,101.75 trillion.
In the same period, the total value of digital banking transactions amounted to Rp 58,478.24 trillion, exhibiting a 13.48 percent year-on-year growth. Projections indicate a further 9.11 percent yoy increase, reaching Rp 63,803.77 trillion in 2024.
Simultaneously, the value of electronic money (UE) transactions experienced a 43.45 percent yoy surge, amounting to Rp 835.84 trillion. Projections anticipate a 25.77 percent yoy increase, reaching Rp 1,051.24 trillion in 2024.