JAKARTA - Economic liquidity or broad money (M2) in May 2021 continued to post stable growth. The M2 position in May 2021 was IDR6,994.9 trillion or grew 8.1% (yoy), slowing compared to the previous month's growth of 11.5% (yoy).
The slowdown occurred in the majority of components of the narrow money supply (M1) and quasi money. M1 growth in May 2021 was 12.6% (yoy), lower than April 2021 growth of 17.4% (yoy). Quasi money growth also slowed, from 9.7% (yoy) in the previous month to 6.8% (yoy) in May 2021.
Based on the influencing factors, the slowdown in M2 in May 2021 was mainly influenced by the slowdown in net foreign assets. Net foreign assets grew 6.4% (yoy), slower than 10.7% (yoy) in April 2021.
Meanwhile, net receivables to the Central Government grew 61.4% (yoy), higher than the previous month's growth of 45.0% (yoy). In addition, credit growth[1] was recorded at -1.3% (yoy), although it continued to show improvement compared to March and April 2021 growth of -3.7% (yoy) and -2.4% (yoy). (LM)