Indonesia's M2 money supply saw a slight deceleration in its growth rate in May 2025, slowing down to 4.90% year-over-year, from 5.20% in the previous month as per the latest data update on June 23, 2025.
This change marks a subtle decline in the growth momentum of the nation’s broad money supply, indicating potential shifts in liquidity and monetary dynamics within Indonesia’s economy. The M2 figures, which encompass cash in circulation along with short-term bank deposits, serve as an essential barometer of economic health and monetary policies.
The May indicator draws a notable year-over-year comparison, revealing a nuanced picture of monetary expansion compared to the same time a year ago. Economists and stakeholders alike will be observing these trends closely, as they may impact inflation, interest rates, and overall domestic economic conditions. As the Indonesian economy navigates these monetary adjustments, policy responses, and economic performances will continue to be closely monitored.
