Bank Indonesia: Broad Money Slow in October

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Laila Afifa

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  • Logo of Bank Indonesia. REUTERS/Iqro Rinaldi/File Photo

    Logo of Bank Indonesia. REUTERS/Iqro Rinaldi/File Photo

    TEMPO.CO, Jakarta - The growth of broad money or M2, which is used to measure the amount of money circulating in a state's economy, slowed down in October, Bank Indonesia (BI) said. According to BI, October's M2 was recorded at Rp6,025.6 trillion, growing 6.3 percent (YoY).

    The M2 growth is slower than September's 7.1 percent (YoY).

    "M2's slowdown happens to all of its components," BI spokesman Onny Widjanarko said on Friday, November 29. "Factors contributing to the slowdown of M2 growth in October 2019 include the slowing growth of net foreign assets and net domestic assets," he said.

    Onny said that the growth of money in circulation slowed from 7 percent to 6.1 percent in a month, affected by the slowing growth of time deposits, savings accounts, and forex. 

    Meanwhile, narrow money (M1), a.k.a. the supply of physical money and other liquid assets also slowed from September's 6.9 percent to 6.6 percent in October. As for securities other than stocks, the growth decelerated from 39.1 percent to 33.4 percent in October.

    However, currency grew from 4.0 percent (YoY) in September to 5.1 percent (YoY) in October.

    Muhammad Hendartyo