January 2021 Money Supply Reaches Up To IDR 6,761 Trillion

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - Bank Indonesia (BI) reported that the money supply in a broad sense (M2) in January 2021 grew 11.8 percent year-on-year (yoy) to IDR 6,761 trillion.

The growth in the first month of 2021 is lower than the growth in December 2021 of 12.4 percent yoy.

Head of the BI Communication Department Erwin Haryono said that despite this, the monetary authority still said that economic liquidity had shown positive growth, although slightly slower than the previous month's growth.

"This development is mainly due to the slowdown in the growth of quasi money", he said in an official statement, Tuesday, February 23.

Erwin added, based on its components, the growth in M2 was driven by quasi money, which grew by 9.7 percent yoy, lower than the growth in the previous month of 10.5 percent yoy, particularly in time deposits.

Meanwhile, the narrow money supply component (M1) grew 18.7 percent yoy in January 2021, up from 18.5 percent yoy in the previous month.

"Based on the influencing factors, the slowdown in M2 growth in January 2021 was influenced by the slowdown in net claims to the Central Government", he said.

As for January 2021, the growth in net receivables to the government was 54.8 percent yoy, down from the previous month's achievement of 66.9 percent yoy.

"Meanwhile, credit growth in January 2021 improved. This improvement was reflected in credit growth which contracted 2.1 percent yoy, less than the contraction of 2.7 percent yoy in the previous month", he added.

Finally, the growth in net foreign assets in January 2021 was 14.9 percent yoy, higher than the growth in December 2020 of 13.6 percent yoy.