Indonesia’s broad money (M2) grew faster in December 2025, reaching IDR 10,133.1 trillion (31/12). This represents a 9.6% year-on-year (yoy) increase, up from 8.3% in November 2025.

Narrow Money and Quasi-Money Support Growth

The higher M2 growth was driven by narrow money (M1), which rose 14.0% yoy, and quasi-money, which increased 5.5% yoy. These components contributed significantly to overall liquidity expansion in the economy.

Government Claims and Credit Expansion Influence Liquidity

The development of M2 was mainly affected by net claims on the central government and credit disbursement. Net claims on the central government grew 13.6% yoy, higher than 8.7% in November 2025. Meanwhile, loans extended to the public increased 9.3% yoy, compared with 7.9% in November (31/12).

The report specifies that credit figures only include loans and exclude other financial instruments, such as debt securities, bankers’ acceptances, and repo claims. Credit from foreign offices and loans to the central government or non-residents are not counted.

Foreign Assets Contribute to Liquidity Trends

Net foreign assets also influenced M2, growing 8.9% yoy after 9.7% in November 2025. While slightly lower than the previous month, foreign assets remained an important factor in the overall money supply.

PHOTO: PEXELS

This article was created with AI assistance.

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