Bank Indonesia reports M2 growth and declining counterfeit currency

Bank Indonesia reported that the broad money supply (M2) grew by 8.3 percent year-on-year in July 2026, reaching Rp10,371.1 trillion. This growth was driven by a 10.0 percent increase in narrow money (M1) and a 5.6 percent increase in quasi money. Credit distribution also saw significant growth, rising 13.0 percent year-on-year, up from 12.1 percent in June 2026.

In a separate development, Bank Indonesia noted a significant decrease in the circulation of counterfeit currency. During the first half of 2026, the counterfeit rate dropped to 1 ppm (piece per million), down from 4 ppm in 2025. This rate is notably lower than those recorded in Australia (6 ppm), the Philippines (10 ppm), and the European Union (14 ppm). Officials attributed the decline to improved banknote security features and effective coordination in combating counterfeit currency.