BI Reveals Economic Liquidity At The End Of 2023 Grows, This Is The Trigger Factor

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) noted that economic liquidity or money supply in a broad sense (M2) in December 2023 grew.

The position of M2 in December 2023 was IDR 8,824.7 trillion, an increase of 2.9 percent (mom) from IDR 8,574.9 trillion in the previous month.

Executive Director of the BI Communication Department Erwin Haryono said that the M2 position in December 2023 grew 3.5 percent (yoy), higher than the previous month's growth of 3.3 percent (yoy).

"This development was driven by the narrow money supply (M1) growth of 2.1 percent (yoy) and quasi money of 5.2 percent (yoy)," he explained in his official statement, Monday, January 22, 2024.

BI data also shows that M2 growth also increases when compared to November 2023.

Erwin said, based on the influencing factors, the development of M2 in December 2023 was caused by two things.

"Especially influenced by the development of lending and net bills to the central government," explained Erwin

Erwin detailed that credit travelers in December 2023 grew 10.3 percent (yoy), or increased when compared to the previous month's growth of 9.7 percent (yoy).

Meanwhile, the net monetary system bill to the central government decreased by 6.5 percent (yoy).

However, the decline was slower than the November 2023 decline which reached 15.0 percent (yoy).

On the other hand, net foreign assets in December 2023 grew 3.6 percent (yoy), after growing 0.3 percent (yoy) in the previous month.