A. Money Supply

In July 2013,  the central bank recorded  money supply of M1 and M2 amounted for IDR 903.23 trillion and IDR 3,529.66 trillion  respectively. To that end, M1 registered an increase of 17% (yoy) in July 2013, which is higher than 10.2% recorded in the previous month. Meanwhile, M2 increased by 15.5% in July 2013 which is higher than 11.9% (yoy) in June 2013.

High growth in money supply during Ramadhan and Eid Mubarak contributed to inflation in August 2013.   Based on Bank Indonesia data, the population withdrew IDR 97 trillion during July 10- August 2, 2013 , which is 94.1% of  IDR 103.1 trillion  predicted as money required by the population during the Eid season. read more

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.   read more

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). read more