Jakarta. The amount of money circulating in Indonesia’s economy rose to Rp 10.45 quadrillion ($582.36 billion) in August, while banks stepped up lending to businesses and consumers, according to Bank Indonesia report.

Indonesia’s broad money supply (M2) grew 8.2% from a year earlier in August, slightly slower than the 8.3% growth recorded in July. At the same time, bank credit grew faster, rising 13.3% year-on-year from 13.0% a month earlier.

“The development of M2 in August 2026 was primarily influenced by credit disbursement,” Bank Indonesia said in its report released Thursday. Bank credit reached Rp 9,019.3 trillion in August, growing 13.3% year-on-year, up from 13.0% in July.

In particular, companies continued to borrow at a strong pace. Corporate lending grew 21.6% from a year earlier, accelerating from 20.9% in July. Investment loans also picked up, growing 23.4% compared with 23.1% a month earlier.

Consumer borrowing, meanwhile, was more subdued. Consumer credit grew 5.0% in August, slowing from 5.3% in July. Motor vehicle loans remained in contraction, falling 10.3% from a year earlier, while mortgage loans grew 4.2%.

The overall money supply growth was partly held back by slower growth in M1, which covers money that is more readily available for everyday transactions. M1 grew 9.0% in August, down from 10.0% in July, to Rp 5,943 trillion.

Meanwhile, quasi money -- mainly funds held in less immediately spendable forms -- grew 6.5%, accelerating from 5.6% in July to Rp4,426.2 trillion. Growth in foreign-currency demand deposits jumped to 11.8% from 5.1% a month earlier.

Deposits held by customers in banks remained steady. Third-party funds reached Rp9,732.8 trillion, growing 7.7% year-on-year, unchanged from July. Savings growth accelerated to 9.5%, while current accounts and time deposits grew 9.4% and 4.7%, respectively.

Property lending also remained strong, growing 18.3% year-on-year. Construction loans were particularly robust, rising 49.5%, while real estate lending grew 15.8%.

Lending to micro, small and medium enterprises also improved, with growth accelerating to 2.3% from 1.6% in July. Investment loans to MSMEs grew 14.9%, although working-capital lending was still down 3.1%.

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