The Money Supply Ahead Of Lebaran Reaches IDR 7,810 Trillion, Bank Indonesia: Due To The Acceleration Of Credit Disbursement

Illustration (Photo: Doc. Bank Indonesia)

JAKARTA – Bank Indonesia (BI) reports that the money supply in a broad sense (M2) has reached Rp7,810.9 trillion as of March 2022.

Head of the BI Communications Department Group Head Junanto Herdiawan said the figure grew 13.3 percent year on year (yoy) or higher than the growth in February 2022 which was recorded at 12.8 percent (yoy).

According to Junanto, this development was driven by growth in the money supply in the narrow sense (M1) of 18.7 yoy and growth of quasi money of 6.9% percent yoy.

"Economic liquidity or money supply in a broad sense (M2) will increase in March 2022," he said in an official statement, Friday, April 22.

On this occasion, Junanto also said that credit disbursement in March 2022 grew 6.4 percent yoy, or an increase compared to the previous month's growth of 6.1 percent yoy.

"The increase in M2 growth in March 2022 is mainly influenced by the continued acceleration of lending," he said.

Furthermore, the government's financial expansion slowed as reflected in the declining growth of net bills to the central government to 27.9 percent yoy, lower than the growth in February 2022 of 42.7 percent yoy.

"On the other hand, net foreign assets contracted 1.5 percent yoy, in contrast to the previous month's positive growth of 1.4 percent yoy," concluded Junanto.