BI Records Money Supply Growth Slows to 8.7 Percent

Bank Indonesia (BI) recorded that economic liquidity or broad money supply (M2) grew by 8.7 percent year-on-year (yoy) in June 2026. The growth slowed compared to the previous month, which was still in double digits. Meanwhile, credit disbursement grew positively by 12.1 percent, an increase from the previous month’s 10.8 percent. The position of M2 in June 2026 was recorded at Rp 10,432.8 trillion or grew by 8.7 percent (yoy), continuing the growth of 10.8 percent (yoy) in May 2026. This development was driven by narrow money (M1) growth of 9.8 percent (yoy) and quasi-money growth of 6.9 percent (yoy), said Head of the BI Communication Department Ramdan Denny Prakoso in an official statement on Thursday (23/7/2026). M1, which accounted for 56.9 percent of M2 in June 2026, was recorded at Rp 5,937.5 trillion or grew 9.8 percent (yoy), lower than the 15.3 percent (yoy) growth in May 2026. The development of M1 was influenced by rupiah demand deposit growth of 10.4 percent (yoy), slowing from the previous month’s growth of 23.9 percent (yoy). Currency outside banks and rural banks (BPR) and rupiah savings grew 15.9 percent (yoy) and 6.8 percent (yoy), respectively, lower than May 2026’s growth of 16.6 percent (yoy) and 8.3 percent (yoy). Quasi-money, with a 42.3 percent share of M2 in June 2026, grew 6.9 percent (yoy) to Rp 4,409.3 trillion, an increase from the previous month’s growth of 6 percent (yoy). This increase was mainly driven by time deposit growth of 6 percent (yoy), higher than May 2026’s 3.3 percent (yoy). Denny further explained that the development of M2 in June 2026 was primarily influenced by credit disbursement and net claims on the central government. BI noted that both credit disbursement and net claims on the central government still recorded double-digit growth. Credit disbursement in June 2026 was recorded at Rp 8,916.7 trillion, growing 12.1 percent (yoy), an increase from the 10.8 percent (yoy) growth in May 2026. Meanwhile, net claims on the central government grew by 10.1 percent (yoy), continuing the 37.4 percent (yoy) growth in May 2026. The increase in credit disbursement was driven by higher lending to corporate and individual debtors, which grew 19.3 percent (yoy) and 3.5 percent (yoy), respectively, higher than the previous month’s 17.2 percent (yoy) and 3.4 percent (yoy). By type of use, Working Capital Credit (KMK) in June 2026 grew 9.6 percent (yoy), higher than the previous month’s 7.9 percent (yoy). The increase in KMK was mainly driven by credit disbursement to the manufacturing and construction sectors. Investment Credit (KI) in June 2026 grew to 22.5 percent (yoy), up from 20.5 percent (yoy) the previous month. The increase in KI was mainly supported by credit disbursement to the construction and manufacturing sectors. Consumer Credit (KK) in June 2026 grew relatively stable at 5.7 percent (yoy), slightly lower than the previous month’s 5.8 percent (yoy). This development was influenced by housing loans (KPR) and apartment ownership loans (KPA), as well as real estate loans, which grew 4.4 percent (yoy) and 14 percent (yoy), respectively. These figures were lower than May 2026’s growth of 4.7 percent (yoy) and 14.5 percent (yoy). Meanwhile, motor vehicle loans contracted by 9.9 percent (yoy), deeper than the 9.4 percent (yoy) contraction in the previous month. Property loan disbursement in June 2026 grew 17.6 percent (yoy), an increase from 17.2 percent (yoy) in May 2026. This increase was mainly driven by construction loans, which grew 47.1 percent (yoy), higher than the previous month’s 44.6 percent (yoy). Credit disbursement to MSMEs in June 2026 grew by 1 percent (yoy), higher than the previous month’s 0.6 percent (yoy), driven by micro, small, and medium enterprise loans which grew 1.5 percent (yoy), 0.1 percent (yoy), and 1.6 percent (yoy), respectively.