Indonesia’s Broad Money Growth Quickens to 5.9% in January
Indonesia’s broad money (M2), a key indicator of liquidity in the economy, grew by 5.9% year-over-year in January, reaching 9,232.8 trillion Indonesian rupiahs. This marks an increase from the 4.8% growth recorded in the prior month, according to a release from Bank Indonesia on Monday.
- The rise in M2 was supported by a 7.2% growth in narrow money supply (M1) and a 2.2% increase in quasi-money or near-money.
The central bank attributed the development of M2 to a 9.6% rise in credit distribution, slightly down from the 9.7% growth observed in the previous month.
- This suggests continued growth in credit availability, a major contributor to the overall increase in broad money.