Jakarta. Indonesia’s broad money supply (M2) grew 7.7 percent year on year in October to Rp 9,783.1 trillion ($585.20 billion), slightly lower than September’s 8.0 percent pace, Bank Indonesia (BI) said on Friday.

Executive Director of BI’s Communications Department Ramdan Denny Prakoso said the October reading reflected stable liquidity conditions. “M2 in October reached Rp 9,783.1 trillion, growing 7.7 percent year on year after expanding 8.0 percent in the previous month,” he said in a statement.

Ramdan noted that narrow money (M1) saw strong momentum, rising 11.0 percent, while quasi money increased 5.5 percent. “The growth was mainly supported by a pickup in M1 and steady expansion in quasi money,” Ramdan added.

According to BI, money supply dynamics were influenced by net foreign assets, loan disbursements, and net claims on the Central Government.

“Net foreign assets grew 10.4 percent year on year, continuing the trend seen in September,” he said. Loan growth stood at 6.9 percent, slightly softer than September’s 7.2 percent. The central bank clarified that the figure only covers loans and excludes debt securities, banker’s acceptances, repos, offshore lending by bank branches, and credit extended to the Central Government or non-residents.

Net claims on the Central Government rose 5.4 percent, compared with 6.5 percent the month before.

BI also highlighted developments in adjusted base money (M0), which climbed 14.4 percent year on year to Rp 2,117.6 trillion. “Growth in adjusted M0 was driven by a 27.1 percent increase in commercial banks’ demand deposits at BI and a 13.4 percent rise in currency in circulation,” Ramdan said.

Ramdan then added that the adjusted M0 metric incorporates the impact of liquidity incentives under BI’s monetary operations.