Indonesia's Central Bank Records 13% Increase in Money Supply in August 2020

Bank Indonesia (BI) recorded broad money supply (M2) in August 2020 at Rp 6,726.1 trillion, representing a 13.3% year-on-year (yoy) growth. This growth rate is higher than the previous month's 10.5%.

This is in line with the 11.5% yoy growth in quasi money, higher than July's 9.7% yoy. Furthermore, the narrower money supply (M1) also grew by 19.3%, exceeding July's 13.1%. The increase in M1 was driven by a 28.8% yoy surge in rupiah current account deposits.

Meanwhile, the float (balance) of bank-issued electronic money experienced a -3% yoy decline. The amount of physical currency in circulation in August 2020 was recorded at Rp 661.2 trillion, showing a 6.2% yoy growth, lower than the previous month's 7.8%. Finally, non-equity securities recorded negative growth at -18.7% yoy.