In February 2021, financial liquidity or money supply in a broad sense (M2) continued to grow, supported by the narrow money supply component (M1), according to a Bank Indonesia report published today.

M2 position in February 2021 amounted to Rp6,810.5 trillion or grew by 11.3% (YoY), although it was slower compared to the previous month's growth of 11.8% (YoY). M1 growth in February 2021 was 18.6% (YoY), relatively stable compared to the last month's growth of 18.7% (YoY).

Meanwhile, quasi-money growth slowed down from 9.7% in the previous month to 9.2% (YoY) in February 2021.

"Based on the influencing factors, M2 growth in February 2021 was mainly influenced by the continued high net claims to the Central Government, a slowdown in net foreign assets, and decreased credit," said the official publication of BI,

The growth in net receivables to the Central Government remained high at 50.8% (YoY), although it was lower than the previous month's achievement of 54.8% (YoY). Meanwhile, growth in net foreign assets was 11.5% (YoY), slowing down compared to January 2021's growth of 14.9% (YoY).

Also, credit growth contracted by 2.3% (YoY), slightly deeper than the contraction of 2.1% (YoY) in January 2021.