Money Supply In Indonesia Has Increased By 5.9 Percent, Reaching Rp 9,232 Trillion

Bank Indonesia (BI) has reported an increase in the liquidity of the economy, or the broad money supply (M2), in January 2025. This rise in the money supply is higher than the previous month. Ramdan Denny Prakoso, the Head of BI's Communication Department, stated that the M2 position in January 2025 reached Rp 9,232.8 trillion, which is lower than the Rp 9,246.6 trillion recorded in December 2024. "The liquidity of the economy, or broad money supply (M2), grew more significantly in January 2025," he said in a statement on Monday (February 24, 2025). Year-on-year, the money supply in Indonesia increased by 5.9% in January 2025, which is an improvement from the previous month's growth of 4.8%.

Looking at the composition, this growth was driven by a 7.2% annual increase in narrow money (M1), while quasi-money grew by 2.2%. Denny further explained that the M2 development in January was mainly influenced by the growth in credit distribution and net foreign assets. Credit distribution in January 2025 grew by 9.6% year-on-year, which is relatively stable compared to the previous month's growth of 9.7%. Additionally, net foreign assets increased by 2.4% year-on-year, higher than the previous month's growth of 0.8%. "Meanwhile, net claims on the central government contracted by 14.3% year-on-year, following a contraction of 17.5% year-on-year in the previous month," Denny added.

For context, broad money includes cash held by the public, demand deposits in rupiah, electronic money, and rupiah savings that can be withdrawn at any time.

Tag: Bank Indonesia Broad Money Supply Ramdan Denny Prakoso