BI: Money Circulating In October 2022 Achieves IDR 8,222.2 Trillion Thanks To The Disbursement Of Credit

Illustration. (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) recorded that economic liquidity or money supply in a broad sense (M2) in October 2022 reached IDR 8,222.2 trillion or grew 9.8 percent compared to the same period the previous year (year-on-year/yoy) thanks to the soaring credit growth.

M2 growth last month was also recorded higher than growth in September 2022 which was 9.1 percent (yoy).

"M2 growth in October 2022 was mainly influenced by the development of lending," said BI Communication Department Executive Director Erwin Haryono in an official statement, quoted from Antara, Wednesday, November 23.

Credit disbursement in October 2022 grew 11.7 percent (yoy) to IDR 6,314.4 trillion, after the previous month grew 10.8 percent (yoy), mainly supported by productive lending (investment).

Peningkatan penyaluran kredit terjadi baik pada nasabah korporasi yang tumbuh 14 persen (yoy) maupun individual, yakni 10,4 persen (yoy).

Meanwhile, the monetary system's net bill to the central government contracted 16.8 percent (yoy), after the previous month contracting by 32.5 percent (yoy).

Net foreign assets recorded a contraction of 3.8 percent (yoy), after contracting by 5.3 percent (yoy) in September 2022.

In addition, the development of M2 was also driven by the growth of money in circulation in a narrow sense (M1) of 14.9 percent (yoy) from the previous month which only grew 13.5 percent (yoy).

M1 includes cash outside of Commercial Banks and Rural Banks (BPR) which grew 5.5 percent (yoy), rupiah giro 32.6 percent (yoy), and rupiah savings withdrawn at any time 6.9 percent (yoy).

Another component of M2, namely quasi money, with a share of 42.7 percent, recorded a slow growth from 3.8 percent (yoy) in September 2022 to 3.5 percent (yoy) in October 2022 to IDR 3,511.7 trillion. Meanwhile, securities other than stocks grew 29 percent (yoy) to IDR 26 trillion.

The quasi money component consists of futures savings (rupiah and foreign exchange/varlas) which increases by 0.3 percent (yoy), 16 percent other savings (rupiah and foreign currency), and 14.3 percent (yoy) class giro. ).