Money Supply Posts Double-Digit Growth, Bank Lending Rises

Bank Indonesia (BI) has reported that economic liquidity, or broad money supply (M2), recorded double-digit growth in May 2026. The total money supply reached Rp 10,415.9 trillion. “In May 2026, M2 grew by 10.8 percent year-on-year (yoy), higher than the 9.2 percent (yoy) growth in April 2026, reaching Rp 10,415.9 trillion,” said Head of BI’s Communication Department Ramdan Denny Prakoso in a statement on Tuesday (23/6/2026). Denny noted that this development was driven by narrow money (M1) growth of 15.3 percent (yoy) and quasi-money growth of 6 percent (yoy). M1, which accounted for 57.8 percent of M2 in May 2026, was recorded at Rp 6,025 trillion, growing 15.3 percent (yoy). The development of M1 was influenced, among other factors, by rupiah demand deposit growth of 23.9 percent (yoy), up from 21.3 percent (yoy) in April 2026. Meanwhile, quasi-money, with a 41.5 percent share of M2 in May 2026, grew by 6 percent (yoy) to Rp 4,319.3 trillion, an increase compared to the previous month’s growth of 4.8 percent (yoy). This was driven by foreign currency demand deposit growth of 10.5 percent (yoy) and other savings growth of 22.2 percent (yoy), higher than the 0.6 percent (yoy) and 17.7 percent (yoy) recorded in April 2026 respectively. Time deposits grew by 3.3 percent (yoy), after growing 4.6 percent (yoy) in the previous month. “The development of M2 in May 2026 was primarily influenced by credit disbursement and net foreign assets,” Denny stated. Credit disbursement in May 2026 was recorded at Rp 8,759 trillion, growing 10.8 percent (yoy), higher than the previous month’s growth of 9.4 percent (yoy). Net foreign assets grew by 5.2 percent (yoy), up from 3.7 percent (yoy) in the previous month.