BI: Broad Money M2 Grows 10.8 Percent to Reach Rp10,415.9 T in May

Bank Indonesia (BI) reported that economic liquidity, or broad money supply (M2), grew at a higher rate of 10.8 percent year-on-year (yoy) in May 2026, reaching Rp10,415.9 trillion. “In May 2026, M2 grew by 10.8 percent (yoy), higher than the 9.2 percent (yoy) growth in April 2026, reaching Rp10,415.9 trillion,” said Ramdan Denny Prakoso, Executive Director of BI’s Communication Department, in Jakarta on Tuesday. He further stated that this development was driven by narrow money (M1) growth of 15.3 percent (yoy) and quasi-money growth of 6.0 percent (yoy). The M2 development in May 2026 was mainly influenced by credit disbursement and net foreign assets. For the record, the credit referred to is only in the form of loans and does not include financial instruments equivalent to loans, such as debt securities, banker’s acceptances, and repo bills. The credit also excludes loans provided by overseas branches of commercial banks, as well as credit channelled to the central government and non-residents. Meanwhile, net foreign assets in May 2026 grew by 5.2 percent (yoy), higher than the previous month’s growth of 3.7 percent (yoy). This development was influenced by the growth of commercial banks’ demand deposits at Bank Indonesia, adjusted by 17.4 percent (yoy), and currency in circulation outside banks, which grew by 15.8 percent (yoy). Based on the influencing factors, the adjusted M0 growth has taken into account the impact of providing liquidity incentives (adjusted monetary control).