Indonesia to spend over 16 billion USD on festive events, elections in 2024

Illustrative photo (Photo: Investor Daily)

Jakarta (VNA) – The central bank of Indonesia (BI) on January 18 announced that it has allocated funds amounting to 260 trillion IDR (16.63 billion USD) ahead of major celebrations, including the 2024 elections, Ramadan, and Eid al-Fitr 2024.

Deputy Governor of Bank Indonesia Doni Primato Joewono said that the amount is 35% larger than the funds allocated for Ramadan and Eid al-Fitr 2023.

In the first four months of this year, there are three significant events in Indonesia, namely the elections, Ramadan and Eid. Funding for them can be 35% higher than that of last year due to inflation and hiking prices.

Employers usually give their employees a yearly bonus about a week before Eid, which will liely fall on April 9. A month before Eid or during Ramadan, Indonesians are expected to spend more, increasing the demand for money and domestic consumption.

According to Joewono, Indonesian people tend to withdraw money from banks ahead celebrations. Notably, cash withdrawals during the 2023 end-of-year holiday season amounted to 130 trillion IDR, reflecting a 10.7% surge compared to the preceding year.

In the same period, the total value of digital banking transactions amounted to 58,478.24 trillion IDR, exhibiting a 13.48% year-on-year growth. Projections indicate a further 9.11% year-on-year increase to 63,803.77 trillion IDR in 2024./.