Money Supply in Indonesia Rises Again, Reaching Rp8,222 Trillion in October 2022

Bank Indonesia (BI) reports that national liquidity, or broad money supply (M2), has shown renewed growth. Central bank data indicates that M2 in October 2022 reached Rp8,222.2 trillion, representing a 9.8% year-on-year (yoy) increase.

Head of BI's Communication Department, Erwin Haryono, stated that this growth is slightly higher than the previous month's 9.1% (yoy) growth.

"The growth of M2 in October 2022 was mainly influenced by the development of credit disbursement," said Erwin, as quoted from a press release on Wednesday (November 23rd).

He further explained that credit disbursement in October 2022 grew by 11.7% (yoy) to Rp6,314.4 trillion, compared to a 10.8% (yoy) growth the previous month. This increase was recorded in both corporate loans, which grew by 14% (yoy), and individual loans, which grew by 10.4% (yoy).

Meanwhile, the net monetary claims on the central government contracted by 16.8% (yoy), compared to a 32.5% (yoy) contraction the previous month.

Furthermore, net foreign assets showed a contraction of 3.8% (yoy), following a 5.3% (yoy) contraction in September 2022.

In addition, the growth of M2 was also driven by an increase in the narrow money supply (M1) of 14.9% (yoy), up from 13.5% (yoy) the previous month.