VIVAnews – Governor of the central bank, Bank Indonesia, Boediono, believes that the 2009 Elections will increase public purchasing power. Despite threat of inflation, a lot of money will be circulating.
“A situation like this is good because it adds to the cost of increase in spending by the public and this will add to the public purchasing power,” said Boediono in Surakarta, Tuesday, Jan. 27.
Boediono hopes that the increase in purchasing power will not escalate inflation. However, according to Boediono’s estimates, the increase in money circulation will not exceed that of 2004 Elections.
“I still remember during the 2004 Elections, without doing anything the amount of money circulation increased. Fortunately at that time the supply or the number of available commodities was quite sufficient such that when the money circulation increased, the supply was enough. In 2004, the inflation was also not high,” he said.
Meanwhile, with regard to the issue of counterfeit money being circulated, Bank Indonesia will be on alert. “We are definitely going to coordinate with the law enforcement officials to handle the matter,” said Boediono.
Translated by: Ramona Sofianne Dewi
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