Bank Indonesia Reports 12.9% Growth in Money Circulation

TEMPO.CO, Jakarta - Bank Indonesia (BI) reported a positive growth of economic liquidity or money supply in a broad sense (M2) in January 2022. January's volume of money in circulation was Rp7,643.4 trillion, a 12.9 percent (yoy) increase.

"Currency circulation in January 2022 was recorded at Rp765 trillion, or up by 7.4 percent (yoy), lower than the 9.4 percent (yoy) growth in the previous month. That is in line with the historical pattern, namely the return of community activities to normal after Christmas and New Years," a quote from BI's official statement read in Jakarta, Wednesday, February 23.

BI director of communications Erwin Haryono said that the amount of rupiah savings that can be withdrawn at any time reached Rp2,073.9 trillion. This reflects a growth of 12.5 percent (yoy), slower than December 2021's 13 percent (yoy) growth.

The Indonesian government's financial expansion is reflected in the net bill to the central government, which grew 48.1 percent (yoy) in January. Erwin added that credit disbursement grew 5.5 percent (yoy), up from December 2021's 4.9 percent (yoy).

The amount of net foreign assets also increased albeit slower than the previous month. The growth was recorded at 1.8 percent (yoy), in line with high foreign exchange reserves.

Read: Bank Indonesia: e-Money Transaction Value Grows 66.65% in January

Antara