Jakarta. Bank Indonesia and local lenders are stocking up on cash to cope with expected surging demand for bank notes during the peak of this year’s festive season, which will occur Aug. 25 to Sept. 19.
Budi Rochadi, deputy governor of the central bank, said: “To anticipate cash demand during Ramadan and Idul Fitri, we plan to supply cash of Rp 37.63 trillion [$4.2 billion] to Bank Indonesia branches.”
BI has predicted that demand for cash at its branches during the fasting month and Idul Fitri would be Rp 49.56 trillion, up 16.8 percent from Rp 42.45 trillion in the year-earlier period.
The festive season is expected to drive consumer spending as employees spend their Ramadan bonuses on shopping and charitable donations.
Meanwhile, state-owned Bank Negara Indonesia has prepared Rp 37.9 trillion — 25 percent more than last year — to be disbursed in its ATMs to cope with increased withdrawals.
“We’re expecting a surge in demand for cash by as much as 10 percent to 30 percent in a period of 26 days starting on August 25, when companies start paying their employees’ holiday bonuses,” Suwoko Singoastro, director of operations, said on Thursday
Suwoko also said that BNI had increased monitoring and maintenance of its 4,011 ATMs to ensure they were fully operational when the peak of the season arrives.
“Our ATM service level is now at 98.83 percent. We have also prepared 23 regional ATM centers which will be responsible for providing cash and ATM maintenance,” he said.
Suwoko said BNI had also prepared small denominations to cope with increased demand during Lebaran week, which celebrates the end of fasting.
“The Rp 10,000 bill is very hot in demand, boosted by the issuance of the new bill. We’re expecting an increase in demand for the bill by 70 percent during this festive season to Rp 74 billion compared to regular months,” Suwoko said.
Source : http://www.thejakartaglobe.com/business/banks-stockpiling-cash-for-idul-fitri-festivities/391846
Faisal Maliki Baskoro & Dion Bisara | August 19, 2010
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