Indonesia's Central Bank Records Positive Growth in Money Supply in June 2022

Bank Indonesia (BI) recorded that the economic liquidity or broad money supply (M2) grew positively in June 2022, although it slowed compared to the growth in May 2022.

BI data shows that the M2 position in June 2022 was recorded at Rp7,888.6 trillion, or grew by 10.6% (year-on-year/yoy). This growth remains strong despite slowing compared to the growth in May, which was 12.1% (yoy).

"The growth of M2 in June 2022 was mainly influenced by the acceleration of credit disbursement and the development of Government finances," BI wrote in its report.

Credit disbursement in June 2022 grew by 10.3% (yoy), higher than the previous month's growth of 8.7% (yoy).

Meanwhile, net receivables from the Central Government contracted by 14.0% (yoy), reversing the positive growth in May 2022 of 3.9% (yoy).

On the other hand, net foreign assets contracted by 1.7% (yoy), improving compared to the contraction of 2.9% (yoy) in the previous month.

Based on its components, the development of the money supply in June 2022 was driven by growth in narrow money or M1, which grew by 16.6% (yoy), lower than the previous month's 18.4% (yoy).

Quasi money also grew by 3.3% (yoy), lower than the previous month's growth of 4.6% (yoy).

The component of securities other than shares, with a share growing by 50.7% (yoy), increased compared to the previous month's 45.5% (yoy).