Indonesia's Money Supply Grows 8.3% to Rp 10.371 Trillion in July 2026

Indonesia's economy showed signs of positive liquidity in July 2026, with the broad money supply (M2) expanding by 8.3% year-on-year to reach Rp 10,371.1 trillion. This growth continues a positive trend from the previous month, when M2 grew by 8.7% year-on-year.

The expansion was fueled by a significant 10% year-on-year increase in narrow money (M1), which constitutes 57% of M2, reaching Rp 5,908.7 trillion. M1's growth surpassed June's 9.8% year-on-year increase, driven by a 10.9% rise in rupiah current accounts, up from 10.4% in June. Meanwhile, cash outside banks and rural credit banks saw a slight slowdown, growing 15.7% year-on-year, and easily accessible savings accounts remained stable at 6.8% year-on-year.

Quasi-money, comprising 42.2% of M2, grew by 5.6% year-on-year to Rp 4,375.9 trillion. This represents a slowdown from June's 6.9% growth, with time deposits showing a 4.6% year-on-year increase, down from 6% in the previous month. Bank Indonesia noted that the overall M2 development in July was primarily influenced by credit disbursement and net claims on the central government.

Credit disbursement saw a robust increase of 13% year-on-year, up from 12.1% in June. In contrast, net claims on the central government grew by 4.6% year-on-year, a deceleration from the 10.1% growth recorded in June. Adjusted primary money (M0) grew by 17.1% year-on-year, exceeding June's 13.8% growth, reaching Rp 2,254.5 trillion. This increase in M0 is attributed to the growth in general bank current accounts at Bank Indonesia and currency in circulation.