JAKARTA - M2's position in November 2019 was recorded at Rp 6,072.7 trillion or growing by 7.1% (yoy), higher than the growth in the previous month of 6.3% (yoy).
M2 growth acceleration is derived from an increase in the money in circulation component in the narrow terms (M1). Money in circulation in the narrow terms (M1) shows an increase from 6.6% (yoy) in October 2019 to 10.5% (yoy) in November 2019, due to an increase in currency and demand deposits in rupiah. Meanwhile, components of quasi money and securities other than stocks grew slowly.
Based on influencing factors, the increase in M2 in November 2019 was mainly due to an increase in net foreign asset growth, expansion of government financial operations, and acceleration of lending. The growth of net foreign assets increased from 2.0% (yoy) in October 2019 to 4.6% (yoy). Government financial operations also recorded an expansion of 2.4% (yoy), reversing the direction of growth in the previous month which contracted by -10.0% (yoy).
This expansion is in line with the increase in the monetary system bill to the Central Government followed by a slowdown in obligations to the Central Government. In addition, lending growth grew by 7.0% (yoy), higher than the previous month's growth of 6.6% (yoy), which contributed to an increase in the money in circulation. (LM)