World Economy

Indonesia Liquidity Rises 10%

Indonesia Liquidity  Rises 10%Indonesia Liquidity  Rises 10%

The growth of economic liquidity or money supply in the broader sense (M2) increased in March 2017. M2 position was recorded at Rp5,017.0 trillion ($376 billion), grew 10% year-on-year and growth higher than the previous month which amounted to 9.2% y-o-y, the Division of Monetary and Fiscal Statistics of Bank Indonesia reported in its research publication on Saturday, netralnews reported. Based on its components, the growth in M2 comes from quasi money and securities other than shares, which grew by 8.6% and 33.1% y-o-y, respectively. The increase was higher than that of February 2017 of 7.3% and 6.1%. “Based on the factors that influence, M2 growth is influenced by the accelerated growth of bank credit,” the report said. Meanwhile, the credit disbursed by banks at the end of March 2017 was recorded at Rp4,395.4 trillion or grew 9.1% y-o-y, higher than that of February 2017 which grew by 8.4%. The acceleration of credit growth mainly occurred in working capital credit and investment credit.


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