Cash withdrawals soar ahead of poll

Cash withdrawals soar ahead of poll

Suherdjoko, The Jakarta Post, Semarang

As election campaigning began this week, the number of cash
withdrawal transactions and the number of counterfeit notes
recorded by the Bank Indonesia's (BI) Semarang office have nearly
tripled, said Bachri, head of the Central Java provincial office
on Wednesday.

"The cash trend is apparent as it is seen from the number of
withdrawal transactions by all the banks in the province. A few
months ago, the amount averaged only Rp 100 billion (US$11.8
million) per day. But as we approach the election, it has
increased to Rp 200 billion to Rp 300 billion per day," said
Bachri.

He added, however, that such a trend was also a seasonal
occurrence, so the increase may not be entirely attributable to
politics.

The increased currency circulation also usually occurs ahead
of Idul Fitri holidays when millions of people spend a lot more
on gifts and special meals.

He went on to explain that the trend at the moment could also
be related to the rise in spending for political party campaigns,
and the purchase of party tee-shirts, flags, stickers, etc.

Bachri also issued a warning, saying that a large amount of
the money now in circulation could be counterfeit.

He said that, during the January to February period, BI had
discovered 4,000 counterfeit notes. The number was as big as that
found during the first six months of 2003.

"The amount of counterfeit money has increased by some 300
percent," he said.

Various anticipatory measures have been done by BI, among them
educating the public on the characteristics of a genuine
banknote, so the public.

This year BI conducted banknote education seminars in several
cities like Purworejo, Jepara and Pekalongan.

Bachri said that the programs would be more appropriate when
given to teachers and community leaders. They would in turn be an
information provider to students and residents around them.