Indonesia’s Economy Flashes Rapid Upturn, Data Show It

Jakarta, CNBC Indonesia - Bank Indonesia (BI) announced that the monetary base, or M0, grew at a faster pace in February 2026, signalling the economy is gaining momentum. In that month, M0 rose 18.3% year on year (yoy). This was faster than the 14.7% yoy growth seen in January 2026. ‘It grew 18.3% (yoy), higher than the growth in the previous month,’ BI’s press release quoted on Friday, 6 March 2026. As a result, the end-February 2026 level of M0 stood at Rp 2,228 trillion, having undergone adjustments or ‘adjusted.’ Adjusted M0 describes the development of the monetary base that isolates the impact of a decline in bank giro accounts at Bank Indonesia due to liquidity incentives. Since January 2025, BI has adjusted the calculation of M0 adjusted to provide a better understanding of the development of the monetary base and the effects of BI’s liquidity policy. BI notes that the development of M0 as of February 2026 was driven by the higher growth of commercial bank giro in the BI-adjusted measure by 33.6% yoy and currency in circulation at 15.8% yoy. ‘Based on the factors at play, the growth of M0 Adjusted has taken into account the impact of liquidity incentives (adjusted monetary policy measures),’ BI said.