Developments in Monetary Sector 2013Q2
A. Money Supply
In April 2013, the central bank registered an increase in the level of money supply, M1 and M2 of IDR 836.51 trillion and IDR 3,364.12 trillion. If compared to the same period in the previous year, the level of M1 and M2, showed an increase of 16% and 15% respectively.
The increase in money supply has a tendency of contributing to depreciation of Rupiah and an increase in general level of prices. The high growth in money supply contributes to high inflation as it induces a rise in demand which if not accompanied by growth in the real sector generates an increase in prices.
Developments in Monetary Sector 2013Q1
A.Money Supply
In line with weakening economy growth in the domestic economy, money supply growth has become more sluggish. In December 2012, M2 growth decreased to 14.9% (YoY) compared with 16.4% (YoY), which was registered in December 2011. By the same token, MI growth also decreased to 16.4 %(YoY) in December 2012, smaller than 19.4% (YoY) in December 2011. The decrease in the growth of M2 and MI is attributable to the decrease in Rupiah demand deposits, caused by slower credit expansion as a result of weakening economic growth from 6.5% (2011) to 6.23% (2012).
Developments in Monetary Indicators 2012Q4
A. Money in Circulation
Money in circulation, MI and M2 shows an upward trend reaching IDR 782 trillion and IDR 3,168 trillion in October 2012 respectively, higher than IDR 779 trillion and IDR 3,050 trillion in June 2012. This shows an increase of 0.3% and 3.8% from June to October 2012. In terms of year on year, MI and M2 in October 2012, constituted an increase of 17.6% and 18.3% from the values for October 2011. Nonetheless, compared with values for September 2012, the level of MI showed a decrease of 1.7 %.