Natural Economy Liquidity Decreases In January 2024

Bank Indonesia (Photo; dock. Antara)

JAKARTA - Bank Indonesia (BI) recorded economic liquidity or money supply in a broad sense (M2) in January 2024 amounting to IDR 8,721.9 trillion or a decrease compared to the position at the end of December 2023 which amounted to IDR 8,826.5 trillion.

BI Assistant Governor Erwin Haryono explained that M2 growth at the beginning of this year increased from the end of last year where M2 recorded a growth of 5.4 percent (yoy) in January 2024, higher than growth in December 2023 at 3.5 percent (yoy).

"The development of M2 growth is mainly driven by the growth of money in circulation in a narrow sense (M1)," Erwin wrote in his statement, Friday, February 23.

As for M1 with a share of 55.1 percent of M2, it grew by 4.9 percent (yoy) in January 2024. This increased from the growth of 2.1 percent (yoy) in the previous month. In addition, the development of M1 was mainly caused by the development of cash outside commercial banks and BPR, as well as rupiah savings.

In addition, the cash circulating in the community in January 2024 amounted to Rp915.9 trillion, or grew 10.3 percent (yoy), higher than the growth of 8.7 percent (yoy) in December 2023.

Meanwhile, rupiah savings that can be withdrawn at any time are recorded at Rp2,242.2 trillion, or grew 3.8 percent (yoy). After growing 1.5 percent in the previous month (yoy). Other M1 components, namely rupiah demand also grew 3.6 percent (yoy), after falling 0.7 percent (yoy) in December 2023.

Furthermore, another M2 component, namely quasi money, was recorded at Rp3,886.5 trillion in January 2024 or grew 6.1 percent (yoy), after only growing at the end of last year by 5.3 percent (yoy).

The growth of quasi money was mainly contributed by futures deposits which grew 5.7 percent (yoy), up from 5.1 percent (yoy) growth in December 2023. The same amount of foreign exchange grew 10.7 percent (yoy), after growing 10.3 percent (yoy) in the previous month.

Meanwhile, unlike the other two components of the M2, securities components other than stocks actually recorded a slowdown in growth. securities other than stocks in January 2024 recorded a 3.3 percent (yoy) growth, or a slowdown from 16.5 percent (yoy) growth in the previous month.