2022 State Budget: Fiscal Policy and Structural Reform slide image

2022 State Budget: Fiscal Policy and Structural Reform

Further Strengthening of an Accommodative Bank Indonesia's Policy Mix HoldBI 7- day Reverse Repo Rate Stabilization Of The Rupiah Money Market & Foreign Exchange Quantitative Easing Macro- Prudential Policy Payment System Policy BGM 18-19 OCT and 17-18 NOV 2021 1. Maintaining rupiah exchange rate policy to preserve stability in line with the currency's fundamental value and market mechanisms. 2. Continuing the strengthening strategy for monetary operations to reinforce the effectiveness of the accommodative monetary policy stance. 3. Maintaining an accommodative macroprudential policy stance by holding: (i) the Countercyclical Capital Buffer (CCYB) at 0%, (ii) the Macroprudential Intermediation Ratio (MIR) in the 84-94% range with a lower disincentive parameter of 80% (1st September-31st December 2021) and 84% (1st January 2022), and (iii) the Macroprudential Liquidity Buffer (MLB) at 6% with repo flexibility at 6%, and the Sharia Macroprudential Liquidity Buffer (SMLB) at 4.5% with repo flexibility at 4.5%. 4. Maintaining looser downpayment requirements on automotive loans/financing at 0% for all types of new motor vehicle, while applying risk management and prudential principles, effective from 1st Jan 2022 - 31st Dec 2022. 5. Maintaining a looser Loan/Financing-to-Value (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 from 1st Jan 2022 - 31st Dec 2022. 6. 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 7. Strengthening prime lending rate (SBDK) transparency in the banking industry by deepening the assessment of the largest banks that dominate 70% of the credit market 8. Extending the 0% QRIS merchant discount rate (MDR) for micro merchants until 30th June 2022 to maintain QRIS acceptance and uptake as well as industry sustainability. 9. Implementing the first phase of BI-FAST, starting in the second week of December 2021, based on policies covering participation, provision of infrastructure, maximum transaction value and price schemes, to be announced on 22nd October 2021. 10. Extending credit card policy as follows: (a) Minimum payment equal to 5% of the outstanding balance until 30th June 2022. (b) Late payment penalty equal to 1% of the outstanding balance or a maximum of Rp100,000 until 30th June 2022. 11. Accelerating LCS implementation to facilitate trade and investment with partner countries סנס BGM: Board of Governor Meeting Source: Bank Indonesia 141
View entire presentation