BI Rate Rises, TPF Banking Jumps

Growth of Third Party Funds ( TPF ) banking , annually rising from 12.3 % in November, to 13 % in December influenced interest rate hikes push mold deposit interest rate hikes. Bank of Indonesia (BI ) said total deposits in the banking community during 2013, an increase when compared with the previous year. Thus, the money supply to keep inflation declined fit the mold interest rate policy (BI rate) rises.

As is known, from the middle of last year , the central bank raised the BI rate as much as 175 basis points , from 5.75 % to 7.5 %. This is done to menjangkar rising inflation due to government's decision to adjust the price of fuel oil ( BBM) subsidy.

Based on the data of the Bank of Indonesia in December 2013, the money supply, which consists of money Kartal, checking in rupiah , quasi cash and securities other than shares, growing 12.7 % annually or year on year (yoy ) . Kartal and giro money in rupiah grew by 8.6 % on a yoy .

Meanwhile, during 2012, the money supply consisting of currency Kartal , checking in rupiah , quasi cash and securities other than shares , grew by 15 % on yoy. As for the money Kartal and gyro in rupiah grew by 16.4 %.

For quasi money, which is the Third Party Funds ( TPF ), which consist of term deposits and savings and checking FX, in December 2013 grew 14.8 % yoy, increased compared to the previous month as large as 13.5 % .

Growth in broad money supply growth sustained by increased savings in perbakan community. Storage is driven by the increase in term deposit interest rates of 1, 3 and 6 months to reach 7.9 %, 7.6 % and 7.5 % in December. Compared to the previous month of 7.3 % range in the number of deposits 1 and 3 months, and 7.1 % for 6 -month deposits .

Bank of Indonesia recorded Rp 3575.9 DPK trillion in December 2013, or grew by 13% yoy. When compared to the previous month, as much as 12.3 % growth DPK in setahunan .

"That is indicated by the rising interest rates," said Director of Communications Bank of Indonesia, Peter Jacobs, told reporters at the Department of the Bank of Indonesia, Jakarta, Monday, February 6, 2014.