Indonesia’s money supply in August recorded at 522.3 bln USD, or grew 9.5 percent (year-on-year/yoy), after previously growing by 9.6 percent (yoy) in July 2022.

Jakarta (Indonesia Window) – Bank Indonesia (BI) has reported that economic liquidity or money supply in a broad sense (M2) in August 2022 was recorded at 7,894.1 trillion rupiahs (some 522.3 billion U.S. dollars) or grew 9.5 percent (year-on-year/yoy), after previously growing by 9.6 percent (yoy) in July 2022.

Indonesia’s money supply in August 2022 was driven by the growth in the money supply in the narrow sense (M1) of 13.7 percent (yoy), Head of the BI’s Communications Department, Erwin Haryono, said in an official statement on Friday (Sept. 23).

The M2 growth in August 2022 was mainly influenced by developments in lending, government finances, and net foreign assets, Erwin explained.

According to Erwin, lending in August 2022 grew by 10.3 percent (yoy), after the previous month's growth of 10.4 percent (yoy).

Meanwhile, net bills of the monetary system to the central government contracted 22.4 percent (yoy), after contracting 11.0 percent (yoy) in the previous month, he added.

On the other hand, net foreign assets also contracted by 4.0 percent (yoy), after contracting by 4.6 percent (yoy) in July 2022, Erwin further said.

The central bank also reported that the circulation of currency in August 2022 totaled 805.5 trillion rupiahs (about 53.3 billion USD), or grew by 7.3 percent (yoy), after growing by 8.3 percent (yoy) in July 2022.

Rupiah demand deposits recorded a growth of 24.1 percent (yoy), after the previous month's growth of 25.5 percent (yoy), according to the central bank.

Electronic money float funds in August 2022 were recorded at 9.7 trillion rupiahs (some 641.8 million USD) with a market share of 0.2 percent against M1, growing 23.1 percent (yoy), after previously growing by 16.4 percent (yoy) in July 2022.

Meanwhile, rupiah savings that can be withdrawn at any time with a market share of 4.7 percent against M1, were recorded at 2,161.1 trillion rupiahs in the report position, or grew by 11.1 percent (yoy).

The non-stock marketable securities component with a 0.2 percent share of M2 contracted 4.7 percent (yoy), after growing by 12.3 percent (yoy) in July 2022.

Quasi money, with a 43.5 percent share of M2, was recorded at 3,434.1 trillion rupiahs in August 2022, or grew 4.5 percent (yoy), after growing 3.2 percent (yoy) in the previous month.

*1 U.S. dollars = 15,112 rupiah

Reporting by Indonesia Window