Money Supply in Indonesia Reaches Rp7,911.3 Trillion in April 2022, a 13.6% Increase

Based on Bank Indonesia (BI)'s report, the economic liquidity or broad money supply (M2) in April 2022 reached Rp7,911.3 trillion, growing by 13.6% (year-on-year/yoy). This growth is higher than the 13.3% recorded in March.

BI noted that this development was driven by the growth of the narrow money supply (M1) component and securities other than shares.

M1 in April 2022 grew by 20.8% (yoy) to Rp4,518.4 trillion, higher than the previous month's 18.7% (yoy). This was mainly due to the growth of currency in circulation and readily withdrawable rupiah savings.

Currency in circulation in April was recorded at Rp896.3 trillion, or a growth of 22.3% (yoy), higher than the previous month's 14.4% (yoy). This was driven by increased public activity ahead of the long holiday and the 1443 H Idul Fitri celebrations.

The securities other than shares component grew by 59.3% (yoy) to Rp28.1 trillion in April 2022. This growth was also higher than the previous month's 46.2% (yoy).

"This is related to the increasing bank acceptance obligations to the domestic private sector, deposit certificates, and bonds with a maturity of less than 1 year," BI wrote in its report released on Friday (27/05/2022).

Meanwhile, the growth of quasi money was recorded at 5% (yoy) to Rp3,364.8 trillion in the same period, lower than the previous month's 6.9% (yoy) growth.

The slowdown in quasi money was mainly due to the slowing growth of other time deposits and foreign currency demand deposits, reaching 1.5% (yoy) and 17.2% (yoy) respectively in April 2022.