Money Supply Reaches Rp7.810.9 Trillion in March 2022

Bank Indonesia (BI) reported that broad money supply (M2) reached Rp7,810.9 trillion in March 2022. This figure represents a 13.3% year-on-year (yoy) growth.

The growth in money supply in March 2022 was higher than the 12.8% (yoy) growth recorded in February 2022. BI noted that this growth was driven by growth in all its components.

Narrow money (M1) grew by 18.7% (yoy) to Rp4,352.1 trillion in March 2022. Quasi money grew by 6.9% (yoy) to Rp3,432.2 trillion in the same period. Meanwhile, securities other than shares grew by 46.2% to Rp26.6 trillion.

Based on the influencing factors, the increase in M2 growth in March 2022 was mainly influenced by the continued acceleration of credit disbursement.

In March 2022, credit disbursement grew by 6.4% (yoy), higher than the previous month's growth of 6.1% (yoy). This is in line with the increase in both productive and consumer credit disbursement.

On the other hand, government financial expansion slowed down, in line with the slowdown in the growth of the net monetary system claims on the Central Government, from 42.7% (yoy) in February 2022 to 27.9% (yoy) in March.

Similarly, net foreign assets in March 2022 contracted by 1.5% (yoy), reversing the positive 1.4% (yoy) growth recorded in February 2022, in line with developments in foreign exchange reserves.

(See also: Indonesia's Foreign Exchange Reserves in March Down US$2.3 Billion)