JAKARTA - Liquidity of money or broad money (M2) remains high in September 2020, supported by the narrow money supply component (M1) and quasi money. M2 position in September 2020 was recorded at Rp 6,742.9 trillion or continued high growth of 12.3% (yoy), although it was slower than the previous month's growth of 13.3% (yoy).
This development was due to M1 growth of 17.6% (yoy), lower than the growth in August 2020 of 19.3% (yoy) due to slower Rupiah demand deposits. Quasi money growth also slowed, from 11.5% (yoy) in the previous month to 10.6% (yoy) in September 2020. Meanwhile, securities other than stocks in September 2020 recorded a contraction of 13.9% (yoy), not as deep as the previous month's contraction of 18.7% (yoy).
Based on the influencing factors, M2 growth in September 2020 was driven by increased expansion in government finances. The increase in government financial expansion was reflected in the growth in net receivables to the Central Government which experienced an upward trend, from 65.1% (yoy) in August 2020 to 76.7% (yoy) in September 2020.
In addition, net foreign assets grew by 16.7% (yoy) in September 2020, higher than the growth in August 2020 of 13.8% (yoy). Meanwhile, credit growth in September 2020 was recorded at -0.4% (yoy), in reverse direction from the previous month's growth of 0.6% (yoy). (LM)