Bank Indonesia reports growth in money supply and retail sales

Bank Indonesia has released updated economic indicators for mid-2026. Adjusted Monetary Base (M0) grew by 16.3% year-on-year in August 2026, reaching Rp2,281.5 trillion. This growth rate was slightly lower than the 17.1% recorded in July 2026. The expansion was driven by a 19.0% year-on-year increase in commercial bank deposits at Bank Indonesia and a 12.9% increase in currency in circulation.

In terms of consumer activity, the Real Sales Index (IPR) grew by 1.1% year-on-year in July 2026, recovering from a 3.0% contraction in June. This growth was primarily supported by the food, beverage, tobacco, and miscellaneous goods sectors. For August 2026, Bank Indonesia forecasts a slower growth rate of 0.5% year-on-year, with the spare parts and accessories category expected to be a primary driver.