Bank Indonesia Policy Mix
Strengthened MIR and Sharia MIR to accelerate economic recovery
To accelerate the economic recovery through stimulating bank lending to the corporate sector and export-oriented businesses, BI has decided
to strengthen Macroprudential Intermediation Ratio (MIR/Sharia MIR)) policy through the inclusion of export L/C as a financing component,
while incrementally introducing regulatory disincentives in the form of MIR related reserve requirement Expanding the scope of securities in
the formula to calculate MIR through the inclusion of a new component, namely export L/C, while maintaining the MIR/Sharia MIR at 84-94%
a. Incremental reintroduction of the MIR related reserve requirement (RR) disincentive for banks with an MIR below 75% from 1st May 2021,
below 80% from 1st September 2021 and below 84% from 1st January 2022:
i. 0.15 for banks with a gross NPL/NPF ratio below 5% and Minimum Capital Adequacy Requirement (KPMM) above 19%
ii. 0.10 for banks with a gross NPL/NPF ratio below 5% and Minimum Capital Adequacy Requirement above 14% and up to 19%
iii. 0.00 for banks with a gross NPL/NPF ratio below 5% and Minimum Capital Adequacy Requirement below or equal to 14%
iv. 0.00 for banks with a gross NPL/NPF ratio above or equal to 5%
c. The upper disincentive parameter is set at 0.00 for banks with a Minimum Capital Adequacy Requirement below or equal to 14% and banks
with a Minimum Capital Adequacy Requirement above 14%.
Current Regulation
New Regulation
Current Regulation
New Regulation
Regulation
MIR (CCB)
Sharia MIR
(SCB and
SBU)
Regulation
MIR (CCB)
Sharia MIR
(SCB and
SBU)
In the form of
and/or corporate
sukuk;
Criteria of
Securities
held
corporate bonds
In the form
of corporate
sukuk;
1.Issued by nonbank corporation
and residents.
2 Offered to the public through a
public offering.
3.Rated by a rating agency no
lower than investment grade.
4.Administrated by an institution
In the form of corporate
bonds and/or corporate
sukuk;
In the form
of corporate
sukuk;
Lower
Lower
NPL/NPF
KPMM
Disincentive
Parameter
NPL/NPF
KPMM
Disincentive
Parameter
Criteria of
Securities
held
1. Issued by nonbank corporation
and residents.
2. Offered to the public through a
public offering.
>19%
0.00
>19%
0.15
14%<KPMMS
14%<KPMM<
3. Rated by a rating agency no
lower than investment grade.
<5%
0.00
<5%
0.10
19%
19%
authorised to provide securities
settlement and custodial
services.
4. Administrated by an institution
authorised to provide securities
settlement and custodial services.
≤14%
0.00
<14%
0.00
≥5%
0.00
≥5%
0.00
In the form of export L/C,
Applicable to banks with an MIR/Sharia MIRbelow 75% from 1stMay 2021, below 80% from 1stSeptember 2021 and below 84% from 1stJanuary 2022
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