Money Supply Grew 10.4% in October 2021

Bank Indonesia (BI) recorded that broad money supply (M2) reached Rp 7,490.7 trillion in October 2021. This figure represents a 10.4% year-on-year (yoy) increase compared to October 2020.

The growth in broad money supply last month was higher than in September 2021. M2 grew by 8.2%, reaching Rp 7,300.9 trillion in September 2021.

Growth was also observed in the narrow money supply (M1) and quasi-money components. M1 grew by 14.6% (yoy) in October 2021, higher than the 11.2% growth in September 2021.

Quasi-money experienced growth of 6% (yoy) last month. This figure is higher than the 4.9% (yoy) growth recorded in September 2021.

On the other hand, non-equity securities recorded a contraction of 10.6% (yoy) in October 2021. This contraction was deeper than the 1.2% (yoy) contraction in the previous month.

The growth in M2 in October 2021 was mainly driven by net foreign assets, which grew by 5.7% (yoy). This figure is higher than the 5% (yoy) growth in September 2021.

Furthermore, net domestic assets grew by 12.1% (yoy) last month, higher than the 9.3% (yoy) growth in September 2021. Credit disbursement grew by 3% (yoy) in October 2021, higher than the 2.1% (yoy) growth in the previous month.