TEMPO Interactive, Jakarta: Bank Indonesia said on Wednesday the amount of money in domestic economy during the presidential election period rose 18 percent from a month earlier. Bank Indonesia however said the rise could not be linked solely to the election while the Finance Ministry said the election posed influence to the money supply.
Deputy Director for Money Supply of the central bank Yopie Alimudin said on Wednesday as of July 7th the total amount of money rose Rp18.6 trillion or 18 percent to Rp251,4 trillion, from Rp232,8 trillion on June 15.
Yopie further marked that money supply continue to grow over the year. “During the 2004 presidential election, money supply was recorded at Rp115.3 trillion,” Yopie told Tempo, while in 2008 money supply have jumped to Rp225 trillion, rising by about 5.1 percent from the beginning of 2008.
Yopie said the rise did not completely affected by the presidential race as the cuts on key interest rate by the central bank have prompted regular banks to lower their interest rate. However he acknowledged that the rise during the 2009 election was higher than the 4.2 percent recorded in 2004 election.
Minister Sri Mulyani said the presidential election have bolstered consumption through campaign spendings.