Executive Summary

Key insights and market outlook

Bank Indonesia reported that broad money supply (M2) grew by 8.3% YoY to Rp9,891.6 trillion in November 2025, driven by 11.4% growth in narrow money (M1) and 5.9% growth in quasi-money ³

². The increase was primarily influenced by net claims on the central government and credit growth ³. Total banking credit reached Rp8,196.4 trillion, growing 7.9% YoY, with corporate credit growing 11.5% while individual credit growth slowed to 6.2% ⁵.

Full Analysis

02

Deep Dive Analysis

Indonesia's Financial Landscape: Money Supply and Credit Growth

Broad Money Supply Expansion

Bank Indonesia reported that the broad money supply (M2) reached Rp9,891.6 trillion in November 2025, representing an 8.3% year-on-year (Yo\Y) growth. This expansion was driven by 11.4% growth in narrow money (M1) and 5.9% growth in quasi-money ³

². The M2 growth was primarily influenced by net claims on the central government and credit growth ³.

Components of Money Supply

The growth in M1 was supported by 14.6% YoY growth in currency outside banks and 7.5% growth in demand deposits. Quasi-money, comprising time and savings deposits, grew 5.9% YoY, driven by 16.6% growth in other deposits and 6.4% growth in foreign currency deposits ³

.

Credit Growth Analysis

Total banking credit reached Rp8,196.4 trillion, growing 7.9% YoY in November 2025, up from 7% in October 2025 ⁵

. Corporate credit grew 11.5% YoY to Rp4,570.4 trillion, while individual credit growth slowed to 6.2% YoY to Rp3,563.1 trillion ⁵.

Sectoral Credit Trends

The property sector saw credit growth of 7.4% YoY to Rp1,513.5 trillion, with 8.2% growth in real estate credit and 6.9% growth in mortgage loans ⁶

. This positive trend indicates continued demand in the property market.

Deposits Growth

Total deposits (DPK) in the banking system reached Rp9,217.9 trillion, growing 8.5% YoY. Savings deposits showed strong growth of 8.8% YoY to Rp3,040.2 trillion, while demand deposits grew 12.8% YoY to Rp2,939.3 trillion, and time deposits grew 4.7% YoY to Rp3,238.4 trillion ⁴

.

Economic Implications

The increase in money supply and credit growth signals improving economic activity. The growth in savings deposits and transaction accounts suggests increasing liquidity preference among consumers and preparation for year-end transactions ⁴