Here's The Impact Of Political Year On Customer Deposits Below IDR 100 Million

Rupiah illustration (Photo: dock. Antara)

BANDUNG - Director of the Research Group of the Deposit Insurance Corporation (LPS) Herman Saheruddin provided an explanation regarding the amount of customer savings below IDR 100 million ahead of the political year.

Meanwhile, in 2024 Indonesia will hold presidential elections and regional head elections. Thus, 2023 will be a political year because candidates will actively campaign.

Herman said that as the political year approaches, customer deposits of under IDR 100 million tend to increase.

"What is clear is that during the political year it will definitely increase," said Herman at a media gathering in Bandung, Thursday, November 9.

According to him, the increase in customer savings balances below IDR 100 million was driven by party spending which poured a lot of funds into the General Election.

He cited the increasing production activities of T-shirt entrepreneurs, hats or party flags which could increase the number of customer deposits.

"For example, there are now a lot of orders for printing t-shirts which are usually quiet. Also printing flags, printing flags. So usually this will help," continued Herman.

According to him, the public cannot generalize that savings will decrease during the political year, but it needs to be seen if the middle and lower classes are also helped by the political year.

"But we can see the pattern in the political year that lower middle class people are helped by additional income," he said.

Herman also said that increases and decreases in customer deposits under IDR 100 million do not only depend on the political year. He said, as long as a country's economy is in good condition, public savings of under IDR 100 million will not experience a significant decline.

"If it goes down, the government can monitor it. For example, during a political year, inflation moves, the government immediately moves to give BLT," concluded Herman.

Quoted from LPS data, nominal customer savings under IDR 100 million in September 2023 were recorded at IDR 1,005 trillion, originating from 528 million accounts.