Liquidity Flood, Money Supply Increases To IDR 7.911 Trillion Driven By Credit Expansion

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) reported that economic liquidity or money supply in a broad sense (M2) in April 2022 grew to increase.

Head of the BI Communications Department Erwin Haryono said that the M2 month position was recorded at IDR 7.911.3 trillion or grew 13.6 percent year on year (yoy), or higher than the growth in March 2022 which was recorded at 13.3 percent yoy.

"This development was driven by growth in the money supply in a narrow sense (M1) by 20.8 percent yoy and securities other than shares by 59.3 percent yoy," he said in a press statement today, Friday, May 27.

According to Erwin, the increase in M2 growth in April 2022 was mainly influenced by the continued acceleration of lending. He said banking intermedia last month grew 8.8 percent yoy, an increase compared to March 2022's growth of 6.4 percent yoy.

"Meanwhile, the government's financial expansion slowed, reflected in the growth of net bills to the central government of 22.3 percent yoy, lower than the 27.9 percent yoy growth in March 2022," said Erwin.

On the other hand, net foreign assets contracted 4.4 percent year-on-year or deeper than March's 1.5 percent yoy contraction.