The Money Supply Is Getting Bigger, As Of May 2022 Reaching IDR 7,854 Trillion

Illustration (Photo: Doc. Antara)

JAKARTA – Bank Indonesia (BI) reported that the money supply in a broad sense (M2) in May 2022 was IDR 7,854.8 trillion. This figure is 12.1 percent higher compared to May 2021 (year on year/yoy) with IDR 6,957.3 trillion.

Head of the BI Communications Department Erwin Haryono said although there was an increase last month, this amount was still lower than the April 2022 record which grew by 13.6 percent.

"Economic liquidity or money supply in a broad sense in May 2022 will continue to grow positively," he said in a written statement on Monday, June 27.

According to Erwin, the most recent developments were driven by growth in the money supply in the narrow sense (M1) of 18.4 percent (yoy) and quasi money of 4.6 percent (yoy).

"M2 growth in May 2022 was mainly influenced by the development of government financial expansion and credit disbursement which was not as high as the previous month," he said.

Erwin added that the government's financial expansion was slowing as reflected in the net bill to the central government which grew by 3.8 percent (yoy). This score is lower than the growth in April 2022 of 22.3 percent (yoy).

Meanwhile, lending in May 2022 grew 8.7 percent (yoy) and was declared relatively stable compared to the previous month's growth of 8.9 percent (yoy).

"On the other hand, net foreign assets contracted by 2.9 percent (yoy), improving compared to a contraction of 4.4 percent (yoy) in the previous month," Erwin concluded.