FX.co ★ Indonesia's M2 Money Supply Growth Accelerates to 5.9% in January 2025

Indonesia's financial sector has witnessed a significant shift in January 2025 as the M2 money supply growth rate has climbed to 5.90%, an increase from the previous recorded growth rate of 4.40% in the same month last year. This jump in the money supply, which includes cash, checking deposits, and easily convertible near money, points towards a burgeoning liquidity in the Indonesian economy.

The updated data, released on February 24, 2025, offers a year-over-year comparison, highlighting an increase in the rate at which the supply of money has expanded. The previous year's figure was calculated relative to January 2024, spotlighting a trend where Indonesia is seeing more robust growth in this critical economic indicator.

This increase in the money supply may stimulate further economic activity, lending more support toward growth prospects. Economists are keeping a close eye on these figures, as they may be indicative of broader macroeconomic trends, including inflationary pressures or shifts in monetary policy. As Indonesia continues to chart its economic course, the data from January 2025 provides a timely snapshot of the nation's liquidity landscape.