RRI.CO.ID, Jakarta - Bank Indonesia (BI) reported that Indonesia’s broad money supply (M2) grew 9.6 percent year-on-year in December 2025, reaching IDR 10,133.1 trillion (USD 601.79 billion). The figure was higher than November’s 8.3 percent growth.

BI’s Executive Director of Communications, Ramdan Denny Prakoso, said the expansion was driven by a 14 percent increase in narrow money supply (M1) and a 5.5 percent rise in quasi-money.

M1, which accounts for 58.8 percent of M2, stood at IDR 5,955.9 trillion in December, up from 11.4 percent growth in November. Denny explained that stronger demand deposits and savings supported the increase, with demand deposits rising 22.3 percent and savings climbing 7.7 percent.

Currency outside general and rural banks also grew by 14.3 percent to IDR 1,214.7 trillion, slightly lower than November’s 14.6 percent.

Meanwhile, quasi-money, which accounts for 40.7 percent of M2, expanded 5.5 percent to IDR 4,124.7 trillion, slowing from 6 percent growth the previous month.

The increase was mainly supported by other savings and foreign exchange deposits, which rose 11.9 percent and 2.1 percent, respectively, though both figures were lower than November’s growth.

Denny noted that net bills to the central government also contributed to liquidity growth, rising 13.6 percent, up from 8.7 percent in November. Credit distribution strengthened as well, expanding 9.3 percent in December, up from 7.9 percent in the previous month. Net foreign assets grew 8.9 percent, though this was slower than November’s 9.7 percent.

Primary money (M0), adjusted for monetary control, increased 16.8 percent year-on-year to IDR 2,367.8 trillion, higher than November’s 13.3 percent growth.

This was driven by a 35.1 percent rise in commercial bank deposits at BI and a 12.9 percent increase in currency in circulation. “The adjusted M0 growth reflects the impact of liquidity incentives provided through monetary control,” Denny said. ***