Bank Indonesia Policy Mix
Bank Indonesia Policy Mix: October 2021
B
BANK INDONESIA
BANK SENTRAL REPUBLIK INDONESIA
The BI Board of Governors agreed on 18th and 19th October 2021 to hold the BI 7-Day Reverse Repo Rate at
3.50%, while also maintaining the Deposit Facility (DF) rates at 2.75% and Lending Facility (LF) rates at 4.25%.
%
Rp
Hold the
BI 7-Day
Reverse
Repo
Rate at
3.50%
Continuing the
strengthening
strategy for
monetary operations
to reinforce the
effectiveness of the
accommodative
monetary policy
stance.
• Strengthening prime
lending rate (PLR)
transparency policy
by deepening the
assessment of PLR
transmission to
interest rates on
new loans by loan
type and bank
group
Source: Bank Indonesia
Maintaining
rupiah
exchange
rate policy
to preserve
stability in
line with
the
currency's
fundamental
value and
market
mechanisms
•
•
•
down
• Maintaining looser
payment requirements on
automotive loans/financing at 0% for all types of new
motor vehicle, while applying risk management and
prudential principles (effective 1-Jan-22 to 31-Dec-22)
Maintaining a looser LTV/FTV ratio on property
loans/financing to a max of 100% on all property types
for
banks meeting specific NPL/NPF criteria, while
removing regulations stipulating the gradual liquidation of
partially prepaid property to revive credit growth in the
property sector in line with risk management and
prudential principles (effective 1-Jan-22 to 31-Dec-22)
Implementing 1st phase of BI-FAST, starting in the W2
Dec 2021, based on policies covering participation,
provision of infrastructure, max transaction value and
price schemes
Extending credit card policy until 30-Jun-22 : (a) Min
payment equal to 5% of the outstanding balance (b) Late
payment penalty equal to 1% of the outstanding balance
or a max of IDR100,000
Strengthening
prime lending
rate (SBDK)
transparency
in the banking
industry by
expanding the
assessment of
policy rate
transmission
to prime
lending rates
and interest
rates on new
loans in the
banking
industry by
economic
sector/
subsector
Promoting trade
and investment as
well as continuing
to socialise the use
of local currency
settlement (LCS) in
conjunction with
other relevant
institutions. In
October and
November 2021,
promotional
activities will be
organised in Japan,
United Arab
Emirates, China,
Australia, United
States, UK, Russia,
Bulgaria and
Singapore.
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