Bank Indonesia has injected an additional Rp149.3 trillion in banking liquidity to support financing for micro, small and medium enterprises and for housing, Governor Destry Damayanti said at a press conference on Wednesday (11/11) following a coordination meeting of the Komite Kebijakan Kredit Usaha Rakyat.
Destry said the MSME portion came to about Rp84.3 trillion, generated through a macroprudential liquidity incentive policy that reduced the reserve requirement ratio banks must hold at the central bank. “Bank funds placed at BI have been returned because of the reserve requirement ratio reduction, around Rp84.3 trillion,” she said.
Housing funds freed up
The housing portion amounted to roughly Rp65 trillion, according to Destry. “Around Rp65 trillion has entered banks in the financial sector; banks no longer need to place it at BI and can use it for the housing sector,” she said.
The reserve requirement ratio, known as GWM, was lowered from 9 percent to 7 percent, with the change stated as effective October 2026. Separately, at a Board of Governors press conference on Wednesday (23/9), Bank Indonesia said it had raised the maximum limit for its KLM liquidity incentive from 5.5 percent to 6 percent of third-party funds, effective from 1 September 2026.
Credit growth holds up
Bank Indonesia said bank credit capacity remains loose. Third-party funds grew 10.94 percent year on year. Credit growth came in at 13.65 percent year on year over the same period.
Rp338.2 trillion has been allocated through the KLM financing channel, while Rp123 trillion in incentives has gone toward deepening the money market. “Positive development in bank intermediation is supported by the loose macroprudential policy BI continues through optimisation of KLM,” Destry said.
Source: Bank Indonesia
