Bank Indonesia Raises Bank External Funding Ratio Cap to 40 Percent

Bank Indonesia (BI) has decided to raise the maximum limit for the Bank External Funding Ratio (RPLN) from 35 percent to 40 percent of bank capital. The policy will take effect on 1 July 2026. BI Governor Perry Warjiyo stated that the measure is part of strengthening macroprudential policy aimed at expanding banks’ funding sources to support credit distribution to the real sector. “This increase in the RPLN ratio is intended to broaden banks’ funding sources, particularly from abroad, to support lending and financing for the economy while adhering to prudential principles,” Perry said during a press conference on the results of the BI Board of Governors’ Meeting in Jakarta on Thursday. In addition to raising the RPLN limit, BI is reinforcing macroprudential policy through synergy with the government and stakeholders to encourage bank lending via the Indonesia Intermediation Acceleration Programme (PINISI). The central bank will also deepen the publication of transparency assessments for the Prime Lending Rate (SBDK), including for priority sectors targeted by the Macroprudential Liquidity Incentive (KLM). As of the first week of June 2026, BI has channelled KLM incentives totalling Rp418.1 trillion to banks, comprising Rp355.6 trillion through the lending channel and Rp62.5 trillion through the interest rate channel. By bank group, the incentives were distributed to state-owned banks (Rp209.6 trillion), national private commercial banks (Rp169.9 trillion), regional development banks (Rp30.8 trillion), and foreign bank branches (Rp7.8 trillion). The incentives are directed to support priority sectors, including agriculture, industry and downstream processing, services including the creative economy, construction and housing, as well as MSMEs, cooperatives, financial inclusion, and sustainable financing. “Going forward, Bank Indonesia will continue to strengthen the implementation of accommodative macroprudential policy, including through the Macroprudential Intermediation Ratio (RIM), KLM, and the Bank External Funding Ratio (RPLN) to support bank lending and financing,” Perry said.