Small change vendors are thriving in many cities across the country a week ahead of Idul Fitri, amid a police warning about counterfeit banknotes.

The vendors charge 5 to 10 percent to exchange money for crisp, smaller denomination banknotes.

Wati, 40, a seasonal money changer in Medan, said the money exchange business had been in existence for a long time.

Wati said she had been in the seasonal business for the past seven years, as it was promising and profitable.

'€œProfits are reasonable. Last year, I gained Rp 5 million [US$432] in profit and hope to make more this year,'€ she said while serving customers wanting to change money into smaller denomination banknotes at Merdeka Square recently. This week, dozens of people exchanging money operated out of Merdeka Square.

The informal activity has drawn the interest of many members of the public despite the presence of a Bank Indonesia (BI) outlet offering the same service from July 14 until 25.

Wati said crisp Rp 5,000 and Rp 10,000 were most the sought after banknotes.

She said she charged Rp 50,000 for every transaction of Rp 1 million.

However, she claimed that as Idul Fitri approached, the fee would increase. She said she put up initial capital that she changed into smaller denominations at the bank and then offered to customers.

'€œI put Rp 100 million this year. The capital is not from me alone. Some is borrowed from my brother, sister and friends,'€ said Wati.

Another small change vendor, Dina, 38, used her own capital, albeit smaller in amount.

'€œThis year, I'€™m using my own capital of Rp 30 million. If I borrow money, my profit would not be big,'€ said Dina, who has been involved in the business for five years.

Dina added that she made a profit of Rp 4 million last year, but she had to share it with three financiers.

'€œI hope my earnings will be better this year, since I'€™m using my own capital,'€ she said.

BI North Sumatra and Aceh head Difi A. Johansyah said his bank had set up 71 small change counters in Medan and surrounding areas.

He said small change transactions reached Rp 1.43 billion on Monday.

'€œTotal small change transactions from July 14 to 21 stood at Rp 8.84 billion. I'€™m positive the sum will increase before close on July 25,'€ said Difi.

Wati, Dina and other street money changers saw the opportunity available in the tradition of people of giving money to the needy, relatives and children at Idul Fitri.

The high demand for banknotes brought about by the tradition could trigger crimes, such as counterfeiting money. Police officers in Madiun, East Java, recently inspected several places and met small change vendors to check the authenticity of banknotes.

'€œThe raids are in anticipation of possible fake banknote circulation. Besides that, they are aimed at preventing crimes as the vendors display their money openly on the streets,'€ Madiun Police chief Adj. Sr. Comr. Anom Wibowo was quoted by Antara as saying on Friday.

The officers did not find any counterfeit banknotes in the possession of vendors.

Erna, one of the vendors exchanging banknotes in front of the Madiun Grand Mosque, guaranteed that her banknotes were authentic as she bought them from the central bank'€™s Surakarta office in Central Java.

'€œI guarantee that the money is authentic. Customers should not worry,'€ she assured.

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