Sarman Simanjorang, deputy chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for Regional Autonomy Development, projects that the amount of money circulating during the Eid holiday period will reach at least Rp 92.3 trillion. This figure was obtained through calculations based on the number of travelers predicted by the government reach to 123.8 million.<\/p>\n
Sarman said, there are at least around 30.7 million families who will bring Rp. 3 million to their hometowns.<\/p>\n
\"So out of 123.8 million, we divided it into 4, because the assumption is that at least 1 family has 4 members. So there are 30.7 million families going home. If they bring Rp. 3 million in cash, the circulation of money will reach Rp. 92.3 trillion,\" said Sarman in the IDX Channel's Market Review program, Wednesday (26\/4\/2023).<\/p>\n
According to him, the actual circulation of money during the Eid holiday has the potential to be greater than the predicted figure. The reason is, the momentum of Eid is also used by the public to take a vacation to tourist attractions. Sarman said, even flight tickets to Bali were sold out.<\/p>\n
In addition, the high turnover of money is also based on several other factors. First, the repeal of the PPKM policy which encourages community movement.<\/p>\n
Sarman said the move was in accordance with economic theory, where financial transactions occur when humans move. Second, the increase in the money supply was allegedly a factor driving the high velocity of money.<\/p>\n
\"The community gets a holiday allowance (THR) at this moment. This will boost people's purchasing power,\" he added.<\/p>\n
In addition to the circulation of money which reached Rp 92.3 trillion previously mentioned, remittances from Indonesian migrant workers (PMI) are allegedly driving an increase in circulation of money.<\/p>\n
Sarman said that at least 10 provinces were recipients of remittances, namely Central Java, West Java, East Java, Lampung, Bali, North Sumatra, Banten and Yogyakarta.<\/p>\n
\"In 2021, our PMI will reach 3.2 million. Imagine them sending Rp. 5 million to their families, the total money circulation has reached Rp. 16 trillion,\" he concluded.<\/p>\n
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