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Cash and noncash gifts: Tradition to welcome Idul Fitri
Although experts say that non-cash gifts will potentially erode emotional bonds, the essence of the tradition remains unchanged, which is to spread happiness.
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A man shows new rupiah banknotes obtained from a mobile money exchange service operated by Bank Indonesia on the premises of Mujahidin Mosque in Pontianak, West Kalimantan on April 18, 2023. Demand for cash normally increases ahead of Idul Fitri. (Antara/Nanda)
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haring happiness by giving angpao or red envelopes to relatives, generally those who are younger, during Chinese New Year seems to have become a cultural tradition not only among the Chinese community but also among other ethnicities and religious groups. Bagong (2023) says that angpao is a form of generosity that later developed into part of a tradition.
There is a similarity between the angpao tradition and fitrah during Idul Fitri, which takes the form of a small envelope containing various denominations of banknotes. Here, money becomes a universal language as a manifestation of social, emotional and interpersonal closeness. Happiness arises especially when people receive envelopes containing usually new, neatly lined up, colorful rupiah banknotes, with their distinctive smell.
Behind the tradition, the important role of Bank Indonesia (BI) as the regulatory authority of monetary management for both cash and noncash is undeniable.
For this year's Ramadan and Idul Fitri festival, BI has prepared Rp 195 trillion (US$13 billion) in cash, up by 8.2 percent from last year’s Rp 180 trillion. The increase took into account several reasons, primarily the lifting of COVID-19 restrictions at the end of last year.
The second factor is the predicted rise in the number of people who will travel to their hometowns for a family reunion to celebrate the Islamic holiday. The Idul Fitri mudik (exodus) is expected to involve 123.8 million people or half of Indonesia's population.
The third factor is improvement in economic growth, which reached 5.31 percent by the end of last year and is predicted to expand further this year.
Those factors have prompted the central bank to prepare strategic steps to meet the public's need for cash during the holiday season. First, providing a sufficient amount of banknotes of various denominations, which are in good condition and fit for circulation.
