Ahead Of Eid 2024, Money Turnover Is Estimated To Increase Significantly

Rupiah (Photo: Antara)

JAKARTA - Head of Bank Permata economist Josua Pardede said that seasonally the amount of money circulating during Ramadan and Eid will increase in line with the increasing demand from the general public (the majority of Indonesians are Muslim) and the increase in public mobility related to going home.

"Indeed, there is an increase in the supply of cartal money by BI to meet this need. In line with the normalization after the COVID-19 pandemic, public mobility is predicted to be higher than last year, so it is only natural that the cartal money provided by BI will also increase this year," he explained to VOI, Thursday, April 4.

According to Josua, usually the circulation of money will increase rapidly, both in cities and regions, but before Eid, in line with the homecoming, the circulation of money in the regions will tend to be faster.

Josua said that the faster circulation of money would move the wheels of the economy because trade in goods and services would increase.

In general, Josua estimates that the impact of Ramadan and Eid on the economy could boost growth by 0.14 - 0.25 percent point (ppt).

"So we still see that in the first quarter of 2024, Indonesia's economy has the opportunity to grow in the range of 5 percent 5.1 percent," he explained.

Josua said there were a number of factors that encouraged Indonesia's economic growth amid the increasing prices of goods and food during this Ramadan.

Meanwhile, one of the factors is the increase in government spending, especially related to social assistance and the implementation of elections.

According to Josua, this is reflected in state spending until March 15, 2024, up 18.1 percent on an annual basis or year on year (yoy), and there is a low-base effect from the first quarter of 2023 because the longest period of Ramadan shifted from April last year (triwulan 2) to March this year (triwulan 1).