Executive director of Bank Indonesia’s communications department, Ramdan Denny Prakoso, informed here on Monday that the figure reflects a 4.9 percent year-on-year (y-o-y) increase.
“Meanwhile, it grew 5.2 percent yoy on the previous month (April 2025),” he said.
He informed that the growth was driven by a 6.3-percent yoy rise in narrow money (M1) and a 1.5-percent yoy increase in quasi-money.
Broad money (M2) is a measure of the total money supply in an economy, including physical currency, demand deposits, savings deposits, and other liquid assets that can be easily converted into cash.
Narrow money (M1) comprises the most liquid forms of money supply in an economy, namely physical currency and demand deposits, that are primarily used for daily transactions.
Meanwhile, quasi-money refers to highly liquid assets that are not cash, but can easily be converted into cash, such as savings accounts, government treasury securities, and foreign currencies.
According to the central bank, the expansion of M2 in May 2025 was influenced by the growth in credit disbursements and net claims on the central government.
Credit disbursements in May rose 8.1 percent yoy, but were slightly down compared to 8.5 percent yoy in the previous month.
The credit figures specifically refer to loans and do not include other financial instruments such as debt securities, banker’s acceptances, or repo claims.
Furthermore, the data excludes credit extended by the overseas branches of commercial banks as well as loans provided to the central government or non-residents.
Prakoso said that net claims on the central government contracted 25.7 percent yoy in May, continuing the 21 percent contraction observed in April.
Meanwhile, net foreign assets showed stronger growth, rising 3.9 percent yoy in May, up from 3.6 percent in April.
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Translator: Rizka Khaerunnisa, Uyu Liman
Editor: Azis Kurmala
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