BI Governor Pledges to Maintain Primary Money Growth Above 12% This Year

Bank Indonesia has reaffirmed its commitment to maintaining primary money growth at double-digit levels next year. Governor BI Perry Warjiyo pledged to drive M0 or base money growth above 10-12%. He stated this during the Bank Indonesia Board of Governors Meeting presentation on Wednesday (22/4/2026). “Monetary policy will drive double-digit M0 growth forward; we will keep it above 10%, even above 12%,” he emphasised. According to BI records, M0 growth in March 2026 remained high at 11.8% (yoy). From its components, M0 growth in March 2026 was mainly influenced by commercial bank current accounts at Bank Indonesia, which grew by 38.3%, and currency in circulation, which grew by 8.6%. “From the influencing factors, M0 growth in March 2026 was driven by fiscal expansion and monetary operation strategies,” Perry explained. Efforts to increase M0 are carried out through liquidity management or expansion instruments via monetary operations. In this context, BI can drive primary money growth, among others, by issuing Bank Indonesia Rupiah Securities (SRBI) and purchasing Government Securities (SBN) from the secondary market. Additionally, BI can provide remuneration for banks with excess reserves. In this way, BI can encourage banks to distribute excess liquidity to the real sector.