Medan, CNBC Indonesia - The acting Governor of Bank Indonesia (BI),\nDestry Damayanti, has emphasised that the central bank is not only\nfocused on maintaining the stability of the Rupiah exchange rate and\ninflation but also remains actively involved in driving national\neconomic growth.<\/p>\n
Destry refuted the assumption that BI prioritises stability while\nneglecting economic growth. \u201cRegarding growth, the claim that Bank\nIndonesia is not concerned with growth is incorrect! We remain concerned\nwith growth,\u201d Destry stated during an online media briefing on Friday\n(3ly\/7\/2026).<\/p>\n
She noted that maintaining stability and promoting growth cannot be\nachieved through monetary policy alone. Consequently, BI is optimising\nvarious other instruments, ranging from macroprudential policies to\npayment systems. One such measure involves providing liquidity\nincentives to the banking sector to increase credit distribution to\npriority sectors, including micro, small, and medium enterprises\n(MSMEs).<\/p>\n
\u201cFor MSMEs and low-income communities, we are providing attention\nthrough the reduction of the Statutory Reserve Requirement (Giro Wajib\nMinimum - GWM) for banks that distribute credit to priority sectors,\nincluding MSMEs,\u201d said Destry.<\/p>\n
In the July 2026 Board of Governors Meeting, BI also established\nseveral policies to maintain stability while strengthening economic\ngrowth. On the monetary side, BI will continue to optimise foreign\nexchange market interventions through spot transactions, Non-Deliverable\nForwards (NDF), and Domestic Non-Deliverable Forwards (DNDF) to maintain\nthe stability of the Rupiah exchange rate. The central bank will also\nensure adequate liquidity in the money and banking markets and keep\ninflation within the target of 2.5\u00b11% for 2026-2027.<\/p>\n
Furthermore, BI is expanding various incentives to attract foreign\ncapital inflows, including increasing hedging transaction incentives and\nexpanding the use of Local Currency Transactions (LCT) with partner\ncountries. In the banking sector, BI is also increasing the\nMacroprudential Liquidity Incentive Policy (KLM) incentive to a maximum\nof 6% of Third-Party Funds (DPK), up from 5.5%, while introducing a new\nscheme to reduce liquidity segmentation and deepen the money market.\nThis policy will take effect in September 2026.<\/p>\n
To strengthen financing for productive sectors, BI is also refining\nthe Macroprudential Inclusive Financing Ratio (RPIM). This policy\nexpands the scope of credit distribution to inclusive sectors, including\nsuppliers, distributors, and business partners, and strengthens the\ninterbank MSME credit distribution scheme. This regulation will be\neffective starting October 2026.<\/p>\n
In the payment systems sector, BI will accelerate digitalisation\nthrough the expansion of QRIS usage, including cross-border QRIS\ncooperation, digital innovation development through PIDI Digdaya and\nhackathon programmes, and the strengthening of the payment system\nindustry while maintaining risk management principles and financial\nsystem stability.<\/p>\n
Through this policy mix, BI reaffirms its commitment to maintaining a\nbalance between macroeconomic stability and efforts to drive sustainable\neconomic growth.<\/p>\n
Details of the BI policy mix announced officially in the Board of\nGovernors meeting as of July 2026 include:<\/p>\n
Strengthening the effectiveness of monetary policy implementation\nto stabilise the Rupiah exchange rate and maintain inflation for 2026\nand 2027 within the 2.5\u00b11% target, by:<\/p>\n
Optimising foreign exchange intervention strategies to strengthen\nRupiah stability through NDF transactions in overseas markets as well as\nspot and DNDF transactions in the domestic market;<\/p><\/li>\n
Managing the interest rate structure in the money market in line\nwith the BI-Rate and pro-market monetary operation instrument interest\nrates;<\/p><\/li>\n
Maintaining adequate liquidity in the money and banking markets\nby ensuring primary money growth exceeds 10% (double digits) in\naccordance with monetary expansion;<\/p><\/li>\n<\/ol><\/li>\n
Expanding incentive policies to increase foreign portfolio\ninvestment inflows and strengthen Rupiah stability, while accelerating\nmoney market deepening, by:<\/p>\n
Increasing and expanding premium reduction incentives for foreign\nportfolio investment, specifically: (i) increasing incentives for\nSell-side Hedging Swaps (Buy-side Hedging Swaps to BI) from 10% to\n12.5%, and (ii) expanding incentives for Sell-side DNDF to 15%;<\/p><\/li>\n
Providing incentives to increase Local Currency Transactions\n(LCT) with partner countries to diversify foreign exchange transactions,\nspecifically: (i) adding premiums for Buy-side Hedging Swaps (Sell-side\nHedging Swaps to BI) by 10%, and (ii) reducing premiums for Sell-side\nDNDF by 10%.<\/p><\/li>\n<\/ol><\/li>\n
Increasing expansion and addressing liquidity segmentation in the\nmoney and banking markets by refining the Macroprudential Liquidity\nIncentive Policy (KLM) and its integration with accelerated money market\ndeepening, as follows:<\/p>\n
Expanding the underlying transactions for repo in conventional\nmonetary operations and\/or Bank Indonesia Sharia-based Liquidity\nManagement (PASBI) by adding corporate bonds and\/or sukuk from PT Sarana\nMulti Infrastruktur (SMI) and PT Sarana Multigriya Finansial (SMF).\nThese securities meet the requirements for corporate bonds\/sukuk issued\nby government-established financial institutions, in line with BPPU\n2030. This policy will commence no later than the end of September\n2026;<\/p><\/li>\n
Refining the KLM for expansion and addressing liquidity\nsegmentation, while continuing to encourage credit distribution to\npriority sectors, through:<\/p>\n
Increasing the total KLM incentive amount available to banks to a\nmaximum of 6.0% of Third-Party Funds (DPK), from the previous 5.5% of\nDPK;<\/p><\/li>\n
[Text truncated in original]<\/p><\/li>\n<\/ul><\/li>\n<\/ol><\/li>\n<\/ol>", "url": "https:\/\/jawawa.id\/newsitem\/bi-denied-to-be-indifferent-to-economic-growth-destry-responds-1785484636", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }