Jakarta (Indonesia Window) – Indonesia’s economic liquidity or money supply in a broad sense (M2) in September 2021 increased by eight percent compared to September 2020 (year-on-year/yoy), to 7,287.3 trillion rupiahs (some 552.2 billion U.S. dollars), according to a report by Indonesia’s central bank, Bank Indonesia (BI).
The increase was driven by higher growth in the narrow measure of money supply (M1) which reached 11.2 percent (yoy) and quasi money which grew 4.5 percent (yoy).
“The growth of M2 in September 2021 was mainly influenced by credit distributions which grew two percent (yoy), an increase compared to the previous month of one percent (yoy),” said Chief Executive Director of BI’s Communications Department Erwin Haryono in an official statement here on Monday.
The credit growth was accelerated for individual and corporate debtors, which increased from 4.7 percent (yoy) to 5.1 percent (yoy), and minus 1.4 percent (yoy) and 0.8 percent (yoy).
Based on the type of use, the increase in credit distributions in September 2021 occurred in all uses of investment credit, working capital credit, and consumption credit.
In addition, Erwin said the slowing growth of net bills to the central government and net foreign assets held back a higher growth in the money supply.
“Net bills to the central government grew 16.1 percent (yoy), slowing from the previous month’s 21.1 percent (yoy),” he noted.
Meanwhile, Erwin continued, the net foreign assets grew five percent (yoy), or lower than the growth in August 2021 which reached six percent (yoy).
Reporting by Indonesia Window