BI Reports Slower Growth in Money Supply

Bank Indonesia (BI) stated that broad money supply (M2) as of June 2026 grew by 8.7 per cent year-on-year (yoy), reaching Rp 10,432.8 trillion. Executive Director of the BI Communications Department, Ramdan Denny Prakoso, explained that this M2 growth continued the 10.8 per cent (yoy) expansion recorded in May 2026.

“This development was driven by narrow money (M1) growth of 9.8 per cent (yoy) and quasi-money growth of 6.9 per cent (yoy),” Ramdan said in a written statement.

The M2 development in June 2026 was primarily influenced by credit disbursement and net claims on the central government. Credit disbursement grew by 12.1 per cent (yoy), higher than the 10.8 per cent (yoy) growth in May 2026. In this context, the credit provided is solely in the form of loans and does not include financial instruments equivalent to loans, such as debt securities, banker’s acceptances, and repo claims. The credit provided also excludes credit extended by overseas branches of commercial banks and credit channelled to the central government and non-residents. Meanwhile, net claims on the central government grew by 10.1 per cent (yoy), continuing the 37.4 per cent (yoy) growth in May 2026.

Additionally, BI reported the development of adjusted base money (M0), which in June 2026 grew by 13.8 per cent (yoy), continuing the 14.2 per cent (yoy) growth in May 2026, reaching Rp 2,228 trillion. This development was influenced by the growth of currency in circulation at 14 per cent (yoy) and adjusted commercial bank demand deposits at BI at 12.7 per cent (yoy). Based on the influencing factors, the adjusted M0 growth has accounted for the impact of liquidity incentive provision.