Bank Indonesia will extend its Macroprudential Liquidity Incentive (KLM) policy to banks lending to business sectors that support job creation, Governor Destry Damayanti said at a press conference after a meeting of the Financial System Stability Committee (KSSK) in Jakarta on Tuesday.
The central bank also announced a cut in the statutory reserve requirement, known as GWM, from 6 percent in September 2026 to a maximum of 5 percent. The change comes through a lower reserve requirement and new incentives for banks.
How the incentives work
Under the strengthened KLM, banks can receive a financing channel incentive of up to 3 percent of third-party funds, known as DPK. A money market deepening incentive, PPU, can reach up to 2 percent.
Banks had enjoyed KLM incentives worth 458.5 trillion rupiah as of 1 October 2026. The PPU incentive takes effect on 1 December 2026, when the strengthened KLM begins.
Stated purpose
Damayanti said the expansion is aimed at sectors that create jobs. The record does not say how much lending the policy is expected to generate.
The measures are designed to ease liquidity conditions in the banking system while steering credit toward those sectors.
Related: Bank Indonesia cuts reserve requirements as credit growth hits 13.26% · Bank Indonesia cuts reserve requirements, rate held at 5.75%
