JAKARTA - Economic liquidity or broad money (M2) in June 2021 grew higher than the previous month.
The M2 position in June 2021 was recorded at Rp7,119.6 trillion or grew 11.4% (yoy), an increase compared to the previous month's growth of 8.1% (yoy). The increase was mainly driven by the acceleration of the narrow money supply (M1) and quasi-money components.
The M1 component in June 2021 grew by 17.0% (yoy), higher than the 12.6% (yoy) growth in May 2021. Quasi money growth also picked up, from 6.8% (yoy) in the previous month to 9.6% (yoy) in June 2021.
Based on the influencing factors, the increase in M2 in June 2021 was mainly influenced by growth in net foreign assets and an increase in lending. Net foreign assets grew by 11.5% (yoy), an increase compared to the growth in May 2021 of 6.4% (yoy). Credit distribution[1] recorded a positive growth of 0.4% (yoy), after recording negative growth since September 2020. On the other hand, net receivables to the Central Government grew 33.9% (yoy), lower than the previous month's growth of 61 ,4% (yoy). (LM)