May 2023, Bank Indonesia Recorded A Total Increase In Money Supply By 6.1 Percent To IDR 8,332.3 Trillion

Illustration - Officers arrange piles of rupiah banknotes when preparing for ATM filling. (DOC. ANTARA)

JAKARTA - Bank Indonesia (BI) noted that in May 2023, economic liquidity or the amount of money circulating in a broad sense (M2) increased by 6.1 percent compared to the same period the previous year (year-on-year/yoy). This figure is higher than the previous month's growth which reached 5.6 percent (yoy).

Executive Director of the BI Communications Department, Erwin Haryono, in an official statement received in Jakarta on Wednesday, revealed that the growth was mainly due to an increase in quasi money of 9.9 percent (yoy).

In May 2023, quasi money, which has a share of 44.2 percent of M2, reached IDR 3,686.4 trillion or grew by 9.9 percent (yoy). This figure increased from the previous month which recorded growth of 8.6 percent (yoy).

Reporting from ANTARA, Wednesday, May 28, the increase in quasi money growth was mainly due to an increase in time deposits of 7.9 percent (yoy) in May 2023, after previously experiencing growth of 4.9 percent (yoy).

Meanwhile, the demand rate grew by 22.6 percent (yoy) in the month of the report, after growing 29.2 percent (yoy) in the previous month. Furthermore, other savings grew 4.7 percent (yoy) in May 2023, after growing 6.9 percent (yoy) in April 2023.

He said the narrow money supply (M1) component continued to grow stably by 3.4 percent (yoy). The rupiah savings that can be withdrawn at any time with a share of 47.6 percent of M1 was recorded at Rp2,200 trillion in the report position or grew 1.4 percent (yoy), after the previous month grew 0.4 percent (yoy).

The components of cash circulating in the community in May 2023 were recorded at IDR 859.3 trillion or grew 4.8 percent (yoy), after contracting by 0.1 percent (yoy) in April 2023.

On the other hand, the rupiah gyro grew 5.5 percent (yoy), after growing by 10.2 percent (yoy) in the previous month. Electronic money float funds in May 2023 were recorded at IDR 11.6 trillion with a share of 0.3 percent of the M1, growing 23 percent (yoy) after growing by 18 percent (yoy) in April 2023.

Components of securities other than shares with a share of 0.3 percent of M2 contracted by 13.8 percent (yoy) in May 2023, after contracting in the previous month by 16.5 percent (yoy).

Erwin explained that the development of M2 in May 2023 was mainly influenced by the development of credit disbursement in May 2023 which grew by 9.4 percent (yoy), an increase compared to the growth in the previous month of 8.1 percent (yoy) in line with the improvement in the development of productive and consumptive loans.

In addition, net foreign assets grew by 9.2 percent (yoy), after the previous month grew 11 percent (yoy). Net bills to the central government decreased by 19.8 percent (yoy), after contracting by 25.3 percent (yoy) in the previous month.