The Amount Of Money In Circulation Is Getting More And More IDR 7,894 Trillion, The Impact Of Inflation Is Getting Felt?

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) reported that the amount of money circulating in a broad sense (M2) in August 2022 was IDR 7,894.1 trillion.

Head of the BI Communications Department Erwin Haryono said that this number is said to grow 9.5 percent year on year (YoY) or lower when compared to the growth in July 2022 which was 9.6 percent.

"This development was driven by the growth of money circulating in a narrow sense (M1) of 13.7 percent", he said in a written statement on Friday, September 23.

Although there was a decrease in growth from last month, the nominal position of August was higher than July which was IDR 7,846.5 trillion. This condition is suspected to be in line with the movement of inflation in the country which shows an increase.

Furthermore, Erwin revealed that M2's growth in August 2022 was mainly influenced by the development of credit disbursement, government finances, and net foreign assets.

He said credit disbursement in August 2022 grew 10.3 percent after the previous month grew 10.4 percent.

Meanwhile, the central government's net monetary system bill contracted 22.4 percent, after the previous month's contract of 11 percent.

"On the other hand, net foreign assets also contracted by 4.0 percent, after contracting by 4.6 percent in July 2022", Erwin concluded.