Bank Indonesia Claims That The Amount Of Money In Circulation Per February Is IDR 6.810 Trillion

Illustration of rupiah currency. (Photo: By courtesy)

JAKARTA - Bank Indonesia (BI) informs that the economic liquidity or money supply in a broad sense (M2) in February 2021 will continue to grow at a high rate, supported by the narrow money supply component (M1).

M2 position in February 2021 was recorded at IDR 6.810.5 trillion or still growing at a high rate of 11.3 percent compared to the same period in 2020.

Head of the Communication Department of Bank Indonesia Erwin Haryono said that although it has experienced annual growth when compared to the previous month's growth, it was still lower at 11.8 percent.

Meanwhile, M1 growth in February 2021 was 18.6 percent year-on-year (yoy), or relatively stable compared to January 2021's growth of 18.7 percent yoy.

Meanwhile, the growth of quasi money slowed down from 9.7 percent in the previous month to 9.2 percent as of February 2021.

"Based on the influencing factors, M2 growth in February 2021 was mainly influenced by the persistently high net receivables from the central government, a slowdown in net foreign assets, and decreased credit", he said in a press statement, Thursday, March 25.

To note, the growth in net claims to the central government remains high at 50.8 percent yoy, although it is lower than the previous month's achievement of 54.8 percent.

Then, the growth of net foreign assets was 11.5 percent or slowed down compared to January 2021's growth of 14.9 percent.

Furthermore, credit growth contracted by 2.3 percent, slightly deeper than the contraction of 2.1 percent in January 2021.

"The weakening of bank credit was caused by a decrease in the distribution of funds to local government debtors and the non-bank financial industry (IKNB)", Erwin concluded.