Bank Indonesia (BI) recorded broad money supply (M2) at Rp 6,994.9 trillion in May 2021, growing 8.1% year-on-year (yoy). However, M2 growth was slower compared to April 2021, which was 17.4%.
This slowdown occurred in the majority of narrow money (M1) and quasi-money components. Specifically, M1 growth was 12.6% (yoy) in May 2021, lower than the previous month's 17.4% (yoy).
Quasi-money growth was recorded at 6.8% (yoy) in May 2021. This figure slowed compared to April 2021, which reached 9.7% (yoy).
Based on influencing factors, the slowdown in M2 growth in May 2021 was mainly influenced by the weakening of net foreign assets. Net foreign assets grew 6.4% (yoy) in May 2021, lower than the previous month's 10.7% (yoy).
Meanwhile, net claims on the central government grew 61.4% (yoy) last month, higher than April 2021's 45% (yoy). In addition, credit growth was recorded at -1.3% (yoy), although it continued to show improvement compared to the previous month's -3.7% (yoy).