BI Unveils Measures to Boost Bank Lending

Bank Indonesia (BI) has eased its macroprudential policy to encourage credit and financing growth while maintaining financial system stability.

“[BI is] setting the Macroprudential Liquidity Incentive (KLM) at 5%, with financing-channel incentives of up to 3% of third-party funds (DPK), and further expanding support for bank lending and financing to business sectors that help create jobs,” BI Governor Destry Damayanti said at a press conference on Wednesday (21 October 2026).

BI is also offering incentives of up to 2% for money-market deepening (PPU), strengthened to encourage liquidity redistribution and bank intermediation. The enhanced KLM will take effect on 1 December 2026.

BI is maintaining the Macroprudential Intermediation Ratio (RIM) at 84–94%. The maximum bank External Funding Ratio (RPLN) remains 40% of bank capital, while the Countercyclical Capital Buffer (CCyB) is set at 0% and the Macroprudential Liquidity Buffer (PLM) at 4%, with repo flexibility of 4%.

“The Sharia PLM ratio is 2.5%, with repo flexibility of 2.5%; and the strengthened Macroprudential Inclusive Financing Ratio (RPIM) policy is being implemented,” she said.