Totalling Rp6,888.0 trillion, M2 growth decelerated to 6.9% (yoy) in March 2021 from 11.3% (yoy) one month earlier in response to broad-based moderation across all components, namely M1, quasi-money and securities other than shares.
M1 growth in March 2021 decreased to 10.8% (yoy) from 18.6% (yoy) in the previous period and growth of quasi-money slumped from 9.2% (yoy) in February 2021 to 5.9% (yoy).
M2 moderation in March 2021 was also influenced by the base effect of strong growth recorded in March 2020 at 12.1% (yoy).
"Based on the affecting factors, M2 growth in March 2021 was primarily impacted by slower growth of Net Foreign Assets (NFA) and net claims on the central government as well as a deeper credit contraction," said BI Communication Department Head in a press release on Friday.
NFA grew 7.9% (yoy) in March 2021, down from 11.5% (yoy) in February 2021, while net claims on the central government remained high despite decelerating from 50.8% (yoy) to 42.0% (yoy) in March 2021.
In addition, outstanding loans disbursed by the banking industry in March 2021 experienced a deeper -4.0% (yoy) contraction compared with -2.3% (yoy) in February 2021.