Primary Money Growth Reaches 14.2 Per Cent in May

Bank Indonesia recorded that adjusted primary money (M0 Adjusted) grew by 14.2 per cent year-on-year in May 2026. This growth represents a slight slowdown compared to April 2026, which reached 14.3 per cent, with the total value amounting to Rp 2,214.6 trillion.

The Executive Director of Bank Indonesia’s Communications Department, Ramdan Denny Prakoso, stated that the growth in primary money was driven by a 17.4 per cent year-on-year increase in commercial bank current accounts at Bank Indonesia, as well as a 15.8 per cent rise in circulating currency.

“Based on the influencing factors, the growth of M0 Adjusted has taken into account the impact of liquidity incentives (adjusted monetary control),” Ramdan said in an official statement on Monday, 8 June 2026.

Ramdan explained that M0 Adjusted reflects the development of primary money by isolating the impact of the decrease in bank current accounts at Bank Indonesia resulting from the provision of liquidity incentives. Consequently, this indicator is considered to provide a more accurate picture of the liquidity conditions within the economy.

According to him, since January 2025, Bank Indonesia has implemented adjustments in the calculation of M0 Adjusted. This step was taken to provide a better understanding of primary money developments and the influence of the central bank’s liquidity policies on monetary conditions.