Indonesia's Primary Money Supply Grew 14.2% in May

Bank Indonesia reported that adjusted primary money supply (M0 Adjusted) experienced a year-on-year growth of 14.2% in May 2026. This figure represents a marginal slowdown from the 14.3% growth recorded in April, with the total value reaching Rp 2,214.6 trillion.

Ramdan Denny Prakoso, Executive Director of Bank Indonesia's Communication Department, explained that the primary money growth was fueled by a 17.4% year-on-year increase in general commercial banks' current accounts held at Bank Indonesia. Additionally, the amount of currency in circulation rose by 15.8%.

"Based on the influencing factors, the growth of M0 Adjusted has considered the impact of liquidity incentives (adjusted monetary control)," Ramdan stated in an official release on Monday, June 8, 2026. He further clarified that M0 Adjusted aims to reflect the development of primary money while isolating the effects of reduced bank current accounts resulting from liquidity incentives. This adjusted indicator is intended to provide a more accurate picture of liquidity conditions within the economy.

Bank Indonesia adjusted its calculation method for M0 Adjusted in January 2025. This change was implemented to enhance understanding of primary money trends and the central bank's liquidity policies' influence on monetary conditions.

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Based on the influencing factors, the growth of M0 Adjusted has considered the impact of liquidity incentives (adjusted monetary control).