Good News From Bank Indonesia: Money Supply Reaches IDR 7.643 Trillion In January 2022, Economic Liquidity Grows Positively

JAKARTA - Bank Indonesia (BI) reported that the money supply in a broad sense (M2) in January 2022 was IDR 7.643.4 trillion.

Head of the BI Communications Department Erwin Haryono said this figure grew 12.9 percent year on year (yoy), and was lower than the growth in December 2021 which was 13.9 percent yoy.

"Despite the decline, economic liquidity or money supply continues to grow positively," he said as reported by the official website on Wednesday, February 23.

According to Erwin, this development was influenced by growth in the money supply in the narrow sense (M1) of 17.1 percent yoy and quasi money by 8.2 percent yoy.

"The development of M2 in January 2022 is in line with the government's financial expansion, accelerated lending, and a slowdown in net foreign assets," he said.

Furthermore, Erwin explained that the government's financial expansion was reflected in net bills to the central government which grew by 48.1 percent, an increase compared to December 2021 growth of 37.7 percent (yoy).

Likewise, credit disbursement was explained as increasing by 5.5 percent yoy, an increase compared to the previous month's growth of 4.9 percent yoy.

"Meanwhile, net foreign assets grew 1.8 percent in line with high foreign exchange reserves, slower than the previous month," concluded Erwin.