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.