BI Injects Rp427 Trillion in Liquidity to Banking Sector, State and Private Banks Receive Allocations

Bank Indonesia (BI) has affirmed that the Macroprudential Liquidity Incentive (KLM) policy continues to be optimised to drive increased credit and financing from banks to priority sectors in support of economic growth.

BI Governor Perry Warjiyo stated that the implementation of the strengthened KLM since 16 December 2025 aims to provide higher incentives for banks that promote credit and financing distribution to specific sectors designated by Bank Indonesia (lending channel) and for banks that are more responsive in reducing new loan interest rates in line with Bank Indonesia’s policy rate reduction trajectory (interest rate channel).

“The KLM incentive received by banks in the first week of March 2026 was Rp427.1 trillion, with lending channel allocation of Rp357.6 trillion and interest rate channel allocation of Rp69.5 trillion,” said Perry in the release of BI’s March 2026 monetary policy review results on Tuesday (17/3/2026).

Based on bank classification, KLM was distributed to state-owned banks (BUMN) at Rp225.6 trillion, private national banks (BUSN) at Rp165.8 trillion, regional development banks (BPD) at Rp28.0 trillion, and foreign exchange banks (KCBA) at Rp7.7 trillion.

At the sectoral level, KLM has been distributed to priority sectors, including agriculture, industry and downstream processing, services including the creative economy, construction, real estate and housing, and SMEs, cooperatives, financial inclusion and sustainability.