Exchange of Small Banknotes Reaches Rp125.2tn Before Eid

TEMPO.CO, Jakarta - Transactions of exchange of small banknotes worth Rp125.2 trillion have been carried out across Indonesia, according to Deputy Governor of Bank Indonesia Ronald Waas.

"The total value of exchange of small banknotes amounts to Rp125.2 trillion, while the actual outflow last year was Rp124.8 trillion," Waas said on Monday.

Since Bank Indonesia began offering cash services in several locations such as Monas IRTI Square, the exchange of small banknotes reached Rp16.7 billion, he stated.

In Jakarta, the central bank began its cash services on June 17 and will continue to provide it (on business days) until July 15 in several locations.

At Monas IRTI Square, it will provide the service from 9:00 a.m. to 1:00 p.m., and at six train stations (Kota, Gambir, Senen, Tanah Abang, Jatinegara, and Cikini), from 10:00 a.m. to 12:00 p.m.

"Banknotes worth Rp20,000 dominated the exchange of small notes among citizens. They accounted for 97 percent of the total," Waas pointed out, adding that the exchange can be conducted only at Bank Indonesia.

Furthermore, to meet an increase in demand for paper money and coins over the upcoming Eid al-Fitr holiday, Bank Indonesia has cooperated with the military and transportation providers in local regions.

The amount of small banknotes exchangeable by the public is limited to Rp3.7 million per person. It can be carried out in the following pattern: one bundle of Rp20,000 banknotes amounting to Rp2 million; one bundle of Rp10,000 banknotes amounting to Rp1 million; one bundle of Rp5,000 banknotes amounting to Rp500,000; and 1 bundle of Rp2,000 banknotes amounting to Rp200,000.

Moreover, by providing cash services in markets and other public places, the deputy governor of the bank hopes it can anticipate people's requirement before Ramadan and Eid al-Fitr and can also prevent the involvement of brokers.

According to a press statement released by Bank Indonesia, the predicted outflow is estimated to be dominated by banknotes of large denominations (Rp20,000 and higher), accounting for 91.7 percent of the total. Smaller banknotes (Rp10,000 and lower) will make up the remaining 8.3 percent.

The highest outflow is estimated to occur in Java Island (32 percent), followed by Jakarta (29 percent), Sumatera (20 percent), Sulampua and Bali Nusa Tenggara (11 percent), and Kalimantan (8 percent).

In addition, it is believed that a highly sufficient amount of money is available to meet the estimated requirement during Ramadan and Idul Fitri 1436H/2015, in terms of the total amount and amount per banknote.

Also, to meet such cash requirements, Bank Indonesia has optimized the distribution and availability of cash at its central office as well as in representative offices in regions.

On the non-cash side, infrastructure and facilities of the payment system have also been prepared in anticipations of increasing non-cash payment transactions. These are carried out either through Real Time Gross Settlement or through Bank Indonesia's National Clearing System (SKNBI), primarily with the implementation of SKNBI Generation II on June 5.

Besides, money exchange services have also been optimized by providing mobile cash services in markets and other public places, to exchange banknotes of smaller denominations within the DKI Jakarta province and locations within the jurisdictions of the bank's representative offices.

ANTARA