{
    "success": true,
    "data": {
        "id": 1760042,
        "msgid": "bi-prepares-macroprudential-liquidity-instrument-incentives-to-curb-aggressive-credit-rate-increases-1779533713",
        "date": "2026-05-23 17:06:00",
        "title": "BI Prepares Macroprudential Liquidity Instrument Incentives to Curb Aggressive Credit Rate Increases",
        "author": "Teuku Muhammad Valdy Arief",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Banking",
        "summary": "Bank Indonesia says Macroprudential Liquidity Instrument (KLM) incentives are designed to curb aggressive rises in banks' lending rates and funding costs following a BI Rate hike to 5.25%. The incentive scheme rewards banks that keep the credit rate spread with the BI Rate around 3% and targets 8-12% credit growth, supported by around 9% YoY growth in deposits in April 2026. The rules are forward-looking, requiring banks to declare credit disbursement targets to qualify for liquidity incentives.",
        "content": "<p>Bank Indonesia (BI) believes that the Macroprudential Liquidity\nPolicy Instrument, or KLM, can dampen aggressive rises in banks\u2019 lending\nrates and funding costs. The policy was prepared after the BI Rate\nincreased to 5.25 percent. Dhaha P. Kuantan, Director of the\nMacroprudential Policy Department at BI, said the KLM incentive scheme\nis designed to keep banks maintaining credit disbursement and to prevent\nbanks from raising lending rates or funding costs excessively. According\nto Dhaha, banking liquidity is currently strong, reflected in\nyear-on-year credit growth and third-party funds (DPK) at around 9\npercent in April 2026. \u2018With that condition, the 8%-12% credit growth\ntarget remains visible to be achieved,\u2019 Dhaha said during a journalist\ntraining in Makassar on Friday, 22 May 2026. The rise in the policy rate\ncould also push up funding costs and bank lending rates. However, BI\nbelieves banks will not raise rates aggressively because of the KLM\nincentive mechanism. The scheme provides higher liquidity incentives to\nbanks that keep the spread between lending rates and the BI Rate within\na reasonable range. \u2018If the spread between the BI Rate and lending rates\nremains around 3%, we consider it still fair and banks will receive full\nincentives,\u2019 he said. Conversely, banks that raise lending rates too\nhigh will receive smaller incentives. Incentives are not given if the\nspread to the BI Rate widens significantly. \u2018If the spread is too high,\nthe incentives will be reduced even to the point of not receiving any\nincentive,\u2019 Dhaha said. Thus, the BI Rate increase does not directly\nburden the business world and borrowers. Dhaha said KLM is now also\ndesigned to be more forward-looking. Under the new mechanism, banks must\nfirst communicate their target commitments for credit disbursement in\norder to obtain liquidity incentives.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/bi-prepares-macroprudential-liquidity-instrument-incentives-to-curb-aggressive-credit-rate-increases-1779533713",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}