Rich People Still Refuse To Shop, Deposits Above IDR 5 Billion Accumulate In The Bank

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA – An economic researcher from the Institute for Development of Economics and Finance (Indef) Abdul Manap Pulungan revealed that the rich in Indonesia were still reluctant to spend their money at the beginning of this year.

He noted that the growth of deposits with a nominal value of above Rp. 5 billion grew 13.3 percent year on year (yoy) in March 2022. The rate of increase was much lower than that of deposits below Rp. 100 million, which only rose 4.7 percent in the previous year. the same period.

“This means rich people haven't shopped. Maybe they shop abroad, not at home," he said while giving an online presentation to the media crew on Wednesday, May 11.

This assumption is reinforced by Abdul's explanation which states that third party funds (DPK) in banks grew by double digits by 11.1 percent yoy in March 2022. This figure is in stark contrast to the bank intermediation movement which only recorded growth of 6.0 percent yoy.

"We will see again, the allocation of bank funds to credit fell to 57.5 percent in February 2022 or smaller than February 2020 which was 66.6 percent before the pandemic," he said.

In order to outsmart the accumulation of funds that occurred, banking business actors then invest this saved money into securities in order to obtain a margin. The yield is then used to pay interest to customers on their deposits in the bank.

"The allocation of bank funds to securities increased from 12.83 percent to 18.14 percent," concluded Abdul.