"This increase was due to the M1 growth of 18.5 percent yoy, higher than 18.0 percent yoy recorded in September 2020, driven by the high circulation of currency in the community," Director of the Communication Department of Bank Indonesia (BI) Junanto Herdiawan stated in Jakarta, Monday.
Quasi-money growth was recorded at 10.7 percent yoy in October 2020 as compared to 10.6 percent yoy in the previous month.
Meanwhile, securities other than stocks continued to contract despite improving from the previous month, from -13.9 percent yoy in September 2020 to -12.1 percent yoy in the reporting month.
Based on the influencing factors, Herdiawan attributed the rise in M2 in October 2020 to an increase in the government’s financial expansion, as mirrored in the growth in net bills to the central government that climbed, from 76.7 percent yoy in September 2020 to 81.6 percent yoy in October 2020.
Meanwhile, net foreign assets grew by 13.9 percent yoy in October 2020, lower than the 16.7-percent yoy growth in September 2020.
Credit growth in October 2020 contracted again, from -0.4 percent yoy in September 2020 to -0.9 percent yoy during the reporting month.
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