August 7, 2025 | 10:43 pm
TEMPO.CO, Jakarta - Bank Indonesia (BI) reported that the adjusted base money supply (M0) amounted to Rp1,925.4 trillion in July 2025, growing by 7.0 percent year over year (yoy). This growth rate was slower than that of the previous month.
In May, the base money supply grew by 8.6 percent with a value of Rp1,957.1 trillion. Ramdan Denny Prakoso, Head of BI's Communication Department, stated that the July development was influenced by the 9.7 percent (yoy) growth of currency in circulation and the 8.4 percent (yoy) increase in demand deposits in commercial banks at Bank Indonesia.
Ramdan explained that the growth data has been adjusted according to the policies carried out by Bank Indonesia, including taking into account and managing the effects of liquidity incentives. "Based on the influencing factors, the growth of adjusted M0 has considered the impact of liquidity incentive provision (adjusted monetary control)," Ramdan Denny said in an official statement on Thursday, August 7, 2025.
The adjusted M0 is a measurement of the base money supply adjusted by the central bank. According to BI's official website, adjusted M0 depicts the development of the base money supply, isolating the impact of the decline in Bank Indonesia's bank deposits due to the provision of liquidity incentives. This means that the base money supply figure has been calculated and is not affected by the decrease in bank balances at BI caused by the distribution of incentives by Bank Indonesia.
Denny added that since January 2025, Bank Indonesia has provided a more comprehensive overview of the base money supply by also showing the figure of Adjusted M0. The goal is to provide a more comprehensive view of liquidity conditions, including those affected by liquidity incentive policies.
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