Money Supply Grows 18.3 Percent, BI Keeps Economy Moving
Bank Indonesia (BI) said it continues to ensure that base money (M0) remains in double-digit growth. “Monetary policy will continue to maintain stability, but of course still encourage economic growth through our other instruments, namely related to M0 which will continue to be ensured to grow in double digits. In fact, in July it has grown 18.3%,” said BI Deputy Governor Aida S Budiman at a press conference following the BI Board of Governors Meeting in Jakarta on Wednesday (19/8).
BI reported that M0 grew 18.3% year-on-year (yoy) in July 2026. By component, M0 growth in July was mainly influenced by commercial bank current accounts at Bank Indonesia, which grew 22.4% (yoy), and currency in circulation, which grew 15.1% (yoy).
“From the influencing factors, M0 growth in July 2026 was influenced by Bank Indonesia’s monetary operations and the expansion of the Government’s financial operations,” said Acting Governor of Bank Indonesia Destry Damayanti.
In line with that, broad money (M2) in June 2026 grew 8.7% (yoy). From the influencing factors, M2 growth was mainly influenced by credit disbursement and net claims on the Central Government.
“Going forward, various strengthening efforts to maintain adequate liquidity in the money market, banking, and the economy will continue to be pursued so as to maintain stability and help support economic growth,” said Destry.
Destry also said that banking intermediation continues to rise, supported by maintained banking resilience. Bank lending in July 2026 grew 13.58% (yoy), up from growth of 12.67% (yoy) in June 2026.
The positive development was supported by loose macroprudential policy pursued through optimisation of the Macroprudential Liquidity Incentive (KLM) Policy to encourage increased bank lending/financing to priority sectors.
As of the first week of August 2026, KLM incentives obtained by banks were recorded at Rp446.5 trillion, with allocation to the financing channel of Rp368.4 trillion, the interest rate channel of Rp73.2 trillion, and the financing to funding channel of Rp4.9 trillion.