Bank Indonesia: The Money Supply Grows Positively Reaching IDR 8.525.5 Trillion

JAKARTA - The monetary authority Bank Indonesia (BI) reported that economic liquidity or money supply in a broad sense (M2) in December 2022 grew positively.

BI Communication Department Erwin Haryono said that the position of M2 in December 2022 was recorded at IDR 8.525.5 trillion.

"This number grew 8.3 percent on an annual basis or year on year (yoy)," he said in a written statement on Tuesday, January 24.

According to Erwin, this development was driven by growth in the narrow money supply (M1) of 9.5 percent yoy.

"Growth also occurred in quasi-money by 6.8 percent year on year," he said.

Erwin added, the development of M2 in December 2022 was mainly influenced by the development of net foreign assets and lending.

Meanwhile, net foreign assets recorded a positive growth of 4.9 percent yoy, an increase compared to growth in the previous period of 1 percent yoy.

"Meanwhile, lending in December 2022 grew 11 percent yoy or slightly increased compared to the previous month's 10.9 percent growth, in line with the development of productive and consumptive credit," said Erwin.

For information, the money supply in December 2022 was higher compared to November 2022 which amounted to IDR 8,296.1 trillion. At that time there was a growth in the money supply of 9.5 percent on an annual basis or year on year.