Money Supply Grew 6.9% in August 2021

Bank Indonesia (BI) recorded that broad money supply (M2) reached Rp 7,198.9 trillion in August 2021. This figure represents a 6.9% year-on-year (yoy) increase compared to August 2020.

However, the growth of M2 money supply slowed down last month compared to July 2021. M2 money supply grew by 8.9% (yoy) to Rp 7,149.2 trillion in July 2021.

This slowdown occurred due to the decelerated growth of narrow money supply (M1) and quasi money. M1 money supply grew by 9.8% (yoy) in August 2021, lower than the 14.9% increase in July 2021.

Quasi money experienced growth of 5.9% (yoy) last month, lower than the 6.8% (yoy) growth in July 2021.

Meanwhile, non-equity securities recorded positive growth of 5.8% (yoy), reaching Rp 20.6 trillion in August 2021. This growth follows a 9.1% (yoy) contraction the previous month.

Based on the influencing factors, the growth of M2 money supply in August 2021 was primarily driven by net claims on the central government, net foreign assets, and credit disbursement. Net claims on the central government grew by 21.1% (yoy) in August 2021, lower than the 38.4% (yoy) growth the previous month.

Net foreign assets grew by 6.0% (yoy) last month, higher than the 4.3% (yoy) growth in July 2021. Meanwhile, credit disbursement grew by 1.0% (yoy) in August 2021, better than the 0.3% (yoy) achievement in the previous month.