Indonesia’s Money Supply (M2) Rises Amid Liquidity Easing and Macroprudential Policy Incentives

24 Oct 2025 Macro Flash

Broad money (M2) grew at a higher pace of 8.0% YoY to reach Rp9,771.3 trillion in September 2025, compared to 7.6% YoY in August 2025. This growth was supported by rising inflation and an increase in credit distribution, which expanded by 7.2% YoY in September 2025, up from 7.0% YoY in August 2025. By component, the growth in M2 was driven by an increase in narrow money (M1), which rose by 10.7% YoY, and quasi money, which grew by 6.2% YoY in September 2025. The expansion in M2 was mainly supported by M1 growth of 56.6%, consisting of an increase in currency outside commercial banks and rural banks (BPR) by 14.5% YoY, as well as rupiah demand deposits comprising electronic money, which grew by 14.9% YoY, and rupiah savings that can be withdrawn on demand, which increased by 5.2% YoY in September 2025. Meanwhile, on a monthly basis, broad money (M2) rose by 1.2% MoM in September 2025.

Download Download Download Download