BI Further Encourages Banks to Seek Overseas Funding, RPLN Now 40% of Capital

Jakarta - The Board of Governors of Bank Indonesia (BI) has decided to once again raise the bank overseas funding ratio (RPLN), signalling that banks should more actively seek foreign loans. Following the Board of Governors meeting on 17-18 June 2026, BI Governor Perry Warjiyo announced the RPLN has been increased from a maximum of 35% last year to 40% of bank capital. “The Bank Overseas Funding Ratio (RPLN) has been raised from a maximum of 35% to 40% of bank capital, effective from 1 July 2026,” Perry said during an online press conference on Thursday (18/6/2026). Perry explained the RPLN increase is intended to broaden banks’ funding sources, particularly from abroad. “The aim is to support credit or financing distribution for the economy while maintaining prudential principles,” Perry stated. This marks the second RPLN increase, following the May 2025 Board of Governors meeting where BI set a countercyclical parameter (an additive or subtractive factor according to economic needs) at a positive 5%, raising the RPLN limit from a maximum of 30% to 35% of bank capital. That policy took effect on 1 June 2025. The strengthening of the RPLN policy, issued through Board of Governors Member Regulation Number 12 of 2025 amending Board of Governors Member Regulation Number 7 of 2024 on the Implementation Regulation of the Bank Overseas Funding Ratio, also aimed to increase banks’ funding sources from abroad. “This is of course available to banks that meet prudential principles, and we certainly hope they can expand funding,” Perry said.