The Amount Of Money Circulating Is Increasing, BI Says The Amount Is IDR 8,300 Trillion

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) informed that the liquidity of the economy or money in circulation in a broad sense (M2) in February 2023 was recorded at IDR 8,300 trillion.

Head of the BI Communication Department Erwin Haryono said the figure grew 7.9 percent on an annual basis (year on year / yoy) when compared to the same period in 2022.

"Liquidity continues to grow positively," he said in a written statement on Friday, March 24.

According to Erwin, this development was mainly driven by the growth of money in circulation in a narrow sense or M1 of 6.6 percent yoy.

"The development of M2 in February 2023 was mainly driven by the development of clean domestic assets," he added.

According to VOI records, the amount of money circulated in February 2023 was higher than January 2023 (month to month/mtm) which amounted to IDR 8,271.7 trillion.

Furthermore, Erwin revealed that the development of net domestic assets grew by 8.2 percent yoy, after the previous month grew 8.7 percent yoy.

"This is in line with the development of capital and other bills to the private sector," he said.

On the other hand, credit disbursement in February 2023 grew by 10.4 percent yoy, after growing 10.2 percent in the previous month.

"This is in line with the development of productive and consumptive credit," he asserted.

Meanwhile, net bills to the central government (Pempus) contracted by 19.6 percent yoy, after contracting by 20.5 percent yoy in January 2023.