TEMPO.CO, Jakarta - Indonesia’s central bank, Bank Indonesia, recorded that adjusted primary money (M0 Adjusted) grew by 14.2 percent year-on-year in May 2026. The growth was slightly slower compared to April 2026, which posted 14.3 percent, with a total value of Rp 2,214.6 trillion.
The Executive Director of the Communication Department of Bank Indonesia, Ramdan Denny Prakoso, said the increase in primary money was driven by higher commercial bank deposits at Bank Indonesia, which rose 17.4 percent year-on-year, as well as an increase in currency in circulation, which grew 15.8 percent.
“Based on the influencing factors, the growth of M0 Adjusted has taken into account the impact of liquidity incentive provision (adjusted monetary control),” Ramdan said in an official statement on Monday, June 8, 2026.
He explained that M0 Adjusted reflects the development of primary money after isolating the impact of declining commercial bank deposits at Bank Indonesia due to liquidity incentive schemes. As a result, the indicator is considered to provide a more accurate picture of liquidity conditions in the economy.
Ramdan added that since January 2025, Bank Indonesia has adjusted its calculation method for M0 Adjusted. The revision was aimed at improving the understanding of primary money developments and the effects of the central bank’s liquidity policies on overall monetary conditions.
Read: Indonesia's Foreign Exchange Reserves Fall US$1.3 Billion as Rupiah Weakens
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