JAKARTA - Economic liquidity or broad money (M2) [1] in August 2021 recorded a positive growth. The position of M2 in August 2021 was IDR7,198.9 trillion or grew 6.9% (yoy), lower than the previous month's growth of 8.9% (yoy). This development was mainly due to a slowdown in the components of the narrow money supply (M1) [2] by 9.8% (yoy) and quasi money[3] by 5.9% (yoy).
The dynamics of M2 growth in August 2021 was mainly influenced by net bills to the Central Government. Net receivables to the Central Government grew 21.1% (yoy), lower than the 38.4% (yoy) growth in the previous month. On the other hand, net foreign assets and lending[4] to the domestic private sector grew higher, thus curbing the slowdown in money supply growth. Net foreign assets grew by 6.0% (yoy), higher than July 2021 growth of 4.3% (yoy). Meanwhile, lending grew by 1.0% (yoy), up from 0.3% (yoy) in the previous month.
As of August 2021, Bank Indonesia will regroup/reclassify the money supply components. Reclassification is carried out on Rupiah savings which can be withdrawn at any time, from the quasi-money component to being part of the money supply component in a narrow sense (M1). The reclassification of the money supply component aims to improve the grouping of the money supply component in accordance with the latest developments and maintain the relevance of the component quantities in the Indonesian Money Supply, referring to the international standard Monetary and Financial Statistics Manual and Compilation Guide (MFSMCG) [5]. (LM)