Money Supply in Indonesia Reaches Rp 9,406 Trillion in May 2025, Driven by Credit Growth

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JAKARTA, Investortruts.id — Bank Indonesia reports that the country's broad money supply (M2) rose 4.9% year-on-year to Rp 9,406.6 trillion ($575 billion) in May 2025, indicating continued liquidity growth in the economy.

The central bank said the increase was supported by solid expansion in narrow money (M1), which includes currency in circulation and demand deposits, and reached a 6.3% annual growth. Quasi money, which includes time and savings deposits, also grew by 1.5%.

Executive Director of Bank Indonesia's Communication Department Ramdan Denny Prakoso said in a written statement on Monday, June 23, that the growth in M2 was mainly driven by increased credit disbursement and influenced by government financial transactions.

"Credit disbursement in May 2025 grew 8.1% year-on-year, following an 8.5% increase in the previous month," Ramdan said.

However, net claims on the central government contracted sharply by 25.7% year-on-year in May, deepening from a 21.0% contraction in April. This decline reflects reduced central government spending or increased issuance of government securities absorbed by the market rather than held by the central bank.

In contrast, net foreign assets recorded a 3.9% annual growth in May, slightly higher than the 3.6% gain in April, contributing positively to overall liquidity.