State-Owned Banks Ramp Up Use of Central Bank Liquidity Facility

Jakarta, CNBC Indonesia — Bank Indonesia (BI) has reported that the macroprudential liquidity incentive (KLM) policy continues to be actively utilised by state-owned banks.

BI Governor Perry Warjiyo stated that the total KLM utilised by banks through the first week of March 2026 reached Rp427.1 trillion. The allocation comprised Rp357.6 trillion through the lending channel for credit expansion and Rp69.5 trillion through the interest rate channel for credit rate incentives.

“The implementation of KLM is designed to provide incentives to banks to encourage credit expansion,” said Perry during a press conference following the central bank’s board of governors meeting on Tuesday (17 March 2026).

According to Perry, the majority of the total KLM absorbed by the banking sector was utilised by state-owned banks (Himbara), totalling Rp225.6 trillion. The remainder was distributed to private national banks and other institutions: Rp166.8 trillion to private national and other state banks, Rp28 trillion to regional development banks (BPD), and Rp7.7 trillion to foreign bank branches.

“By sector, KLM has been channelled to priority sectors including agriculture, industry and downstream processing, as well as services, including the creative economy, construction, real estate, MSMEs, cooperatives, as well as inclusive and sustainable finance,” Perry explained.