The central bank has allocated Rp 150.8 trillion (US$14.9 billion) in cash to anticipate the high rate of withdrawals ahead of the Idul Fitri holiday that falls on Sept. 21 to 22.
Circulation of money is expected to surge by 170 percent ahead of the holidays, from the average of Rp 20 trillion daily, according to Bank Indonesia (BI).
BI deputy governor Budi Rochadi said Friday the central bank had prepared Rp 145.9 trillion in denominations of Rp 100,000 and Rp 50,000, and Rp 4.9 trillion in Rp 20,000, Rp 10,000, Rp 5,000, Rp 2,000, and Rp 1,000 banknotes.
"We predict the net national outflow of money will reach about Rp 54.2 trillion *during the Idul Fitri holidays*," he said during a press briefing.
BI estimates people will need Rp 49.5 trillion in large bills (Rp 100,000 and Rp 50,000) and Rp 4.7 trillion in small bills (Rp 20,000, Rp 10,000, Rp 5,000, Rp 2,000 and Rp 1,000).
Customarily, diasporic Indonesians make the journey home during the Idul Fitri holidays after fasting for the full month of Ramadan.
Last year, more than Rp 20 trillion was withdrawn in cash during the post-fasting holidays, the Central Bureau of Statistics (BPS) recorded.
The influx of around 14 million people to rural areas during the holiday season last year, boosted the circulation of cash.
In 2008 the central bank reserved Rp 76 trillion in cash during the Islamic holiday season.
Budi predicted that this year non-cash transfers would decline due to the slower economy.
As of Sept. 3, the amount of non-cash transactions dropped by Rp 5.1 trillion to Rp 181.8 trillion, in comparison to figures from the end of last year.
"Non-cash transactions are not affected by seasonal factors, but by *the downturn of* the economy," he said.
State-owned banknote-printing company, Perum Peruri, has printed Rp 5.7 trillion worth of banknotes, of which Rp 4.9 trillion is in large bills and Rp 0.8 trillion is in smaller denominations.
The Rp 2,000 bill, which was released into circulation last month, is the most-wanted bill, said Budi.
Edi Siswanto, BI deputy director of money distribution, said that to make it easier for people to change money, there would be five BI vans in the Greater Jakarta area ready to assist people.
"We may add seven or eight vans. Normally each van carries Rp 300 million, but that amount can be increased to between Rp 500 million and Rp 750 million," he said.
To prevent the street trading of small bills, which usually occurs ahead of the Idul Fitri holiday, BI will cooperate with banks and the National Police to limit people and institutions selling small bills near banks and the central bank's branches.
Budi further said that BI would only close from Sept. 21 to Sept. 23 to ensure the flow of money after the Idul Fitri holiday.
BI has calculated the high amount of money to be distributed during the holiday into its inflation forecast, Budi added.
The central bank expects inflation to be lower than 4 percent this year.
