Destry Reveals Banks Beginning to Comply with New BI Liquidity Incentive Rules

Jakarta, CNBC Indonesia - Bank Indonesia (BI) Governor Destry Damayanti has revealed that many banks have already begun implementing the new Macroprudential Liquidity Policy (KLM) scheme, which is set to take effect on 1 September 2026.

As previously noted, BI has increased the maximum limit for the Macroprudential Liquidity Incentive Policy (KLM) to 6% of Third-Party Funds (DPK) starting from 1 September 2026. Under this new KLM regulation, BI will be more selective in distributing liquidity incentives to banks, taking into account the liquidity conditions and portfolio composition of each individual institution.

“Some banks have already [started]. There are several banks where the effective date is actually only in September, but for some banks, it is already becoming visible (the implementation),” said Destry when met at the Parliament Building, Jakarta, on Monday (2_September_2026).

Destry added that the new scheme aims to encourage banks to redirect their funds from securities holdings into credit to drive economic growth. “We can still see that many banks place most of their funds in securities, such as SRBI and SBN, while their credit distribution remains low. Naturally, we want to push them towards lending,” she explained.

Some time ago, Destry stated that the central bank would not hesitate to impose disincentives on banks that continue to hold excessive funds in securities, specifically exceeding 19% of Third-Party Funds (DPK). “We will not provide Statutory Reserve Requirement (GWM) incentives to such banks,” she said.

“Meanwhile, for other banks whose holdings of SBN and SRBI are relatively below 19% of their total DPK, we will provide incentives, namely a reduction in the GWM, which will result in increased liquidity for them as they also distribute credit,” Destry continued.

KLM is an incentive provided by BI to encourage the banking sector to extend credit to priority and productive sectors. In the latest scheme, BI wants to ensure that these incentives are truly used to strengthen the banking intermediation function, rather than to increase holdings of securities (SSB).

Under the new policy, BI will provide an additional liquidity incentive of 2% linked to money market deepening (PPU). Meanwhile, incentives for financing or credit to productive sectors will remain available up to 4%.

Consequently, the composition of the KLM, which has previously reached approximately 5.5%, will be adjusted to 4% for productive sector financing and 2% for money market deepening.