The increase was mainly driven by the acceleration of the components of the narrow money supply (M1) and quasi money
Jakarta (ANTARA) - Economic liquidity, or the nation’s money supply, reached Rp7,119.6 trillion in June 2021, growing 11.4 percent (yoy), compared to 8.1 percent in May 2021.

"The increase was mainly driven by the acceleration of the components of the narrow money supply (M1) and quasi money," said Erwin Haryono, Executive Director of the Communications Department of Bank Indonesia, in a statement released on Friday.

Erwin noted that the M1 component in June 2021 grew by 17 percent (yoy), higher than the growth in May 2021 of 12.6 percent. The growth was mainly due to an increase in the circulation of currency and rupiah demand deposits.

In June 2021, currency outside the monetary system was recorded at Rp739.1 trillion and grew by 13.4 percent (yoy) compared to the previous month of 8.6.


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Likewise, quasi-money growth increased from 6.8 percent (yoy) in the previous month to 9.6 percent in June 2021.

Then rupiah demand deposits in June 2021 grew 19.3 percent (yoy), higher than the previous month's 15.5 percent .
Nevertheless, the float of electronic money issued by banks grew 9.8 percent (yoy) lower than the previous month's 31.4 percent.

Meanwhile, quasi-money in June 2021 amounted to Rp5187.6 trillion with a 72.9 percent share of M2, increasing from 6.8 percent (yoy) in May 2021 to 9.6 percent . The increase occurred in almost all quasi money instruments, both rupiah term deposits and foreign currency demand deposits.

"Based on the influencing factors, the increase in M2 in June 2021 was mainly influenced by growth in net foreign assets and an increase in lending," Erwin said.

The increase was also recorded in the net foreign assets factor, which grew by 11.5 percent (yoy), an increase compared to the growth in May 2021 of 6.4 percent.

Then, credit disbursement recorded a positive growth of 0.4 percent (yoy), after recording negative growth since September 2020. On the other hand, net bills to the central government grew 33.9 percent (yoy), lower than the previous month's growth of 61.4 percent .


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Translator: Kuntum K, Azis Kurmala
Editor: Fardah Assegaf
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