The Money Supply Is Sustainable After Eid, Now It's Only IDR 8,332 Trillion

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) reported that the amount of money in circulation in a broad sense (M2) in May 2023 was IDR 8,332.3 trillion.

Head of the BI Communications Department Erwin Haryono said that this figure grew 6.1 percent on an annual basis (year on year / yoy). The level is higher than the previous month's growth of 5.6 percent.

"Economic liquidity or money supply in a broad sense (M2) in May 2023 grew. This development was mainly driven by the growth of quasi money by 9.9 percent," he said in a press release circulated today, Monday, June 26.

Despite growth, VOI noted that the amount of money in circulation had decreased nominally. It is known that in April 2023 the money circulated in a broad sense of IDR 8,350.4 trillion, along with the momentum of Ramadan and Eid al-Fitr.

Furthermore, Erwin explained that the development of M2 in May 2023 was mainly influenced by the development of credit disbursement.

He said credit disbursement last month rose to the level of 9.4 percent yoy. The score was better than the growth in the previous month of 8.1 percent.

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

On the other hand, net foreign assets grew by 9.2 percent yoy, after the previous month grew 11.0 percent.

Meanwhile, net bills to the central government (Pempus) contracted by 19.8 percent yoy, after contracting by 25.3 percent in the previous month