Investor Presentaiton
Bank Indonesia Policy Mix: JULY 2023
Maintaining Stability and Reviving Growth
BB BANK INDONESIA
BANK SENTRAL REPUBLIK INDONESIA
The BI Board of Governors agreed on 24th and 25th July 2023 to hold the BI 7-Day Reverse Repo Rate (BI7DRR) at 5.75%,
while also maintaining the Deposit Facility (DF) rate at 5.00% and Lending Facility (LF) rate at 6.50%.
%
Hold the
BI 7-Day
Reverse
Repo
Rate at
5.75%
Issuing regulations concerning
instruments to repatriate the
foreign exchange proceeds of
natural resources exports into the
Indonesian financial system based
on three governing principles, :
(i) compliance with the
provisions contained in
Government Regulation No.
36 of 2023,
(ii) leveraging
the foreign
exchange proceeds of natural
resources exports for domestic
purposes,
(iii) the
in
types of instruments
permitted remain
compliance with principles
and (ii), as well as in
accordance with economic and
financial
developments.
Source: Bank Indonesia
market
Rp
Strengthening rupiah
stabilisation policy
through: (i) foreign
exchange market
intervention, including
spot and Domestic
Non-Deliverable
Forward (DNDF)
transactions, as well as
buying/selling
government securities
(SBN) in the secondary
market, and (ii) the
twist operation by
selling short-term SBN
in the secondary
market to increase the
attractiveness of SBN
yields for foreign
portfolio investment
inflows.
Continuing prime lending rate (PLR) transparency policy
with a focus on interest rates in downstream sectors
Strengthening macroprudential policy stimuli to revive
bank lending through implementation of
Macroprudential Liquidity Incentive Policy (KLM) for
Conventional Commercial Banks and Sharia
Banks/Business Units, effective from 1st October 2023,
as follows:
Honing the liquidity incentives for banks disbursing
loans/financing to downstream mineral and coal
mining sectors and downstream non, and ultra-micro
enterprises) as well as the green economy and
finance.
Increasing the total incentive up to a maximum of 4%
from 2.8% previously,
Implementing Macroprudential Liquidity Incentive
Policy by reducing the reserve balances held at Bank
Indonesia required to meet average rupiah reserve
requirements
Honing the payment system digitalisation strategy
to expand digital economic and financial inclusion
by:
.
Strengthening the QRIS Merchant Discount
Rate (MDR) for the micro-enterprise segment
based on value per transaction progressively as
follows: (a) transactions up to Rp100,000 (one
hundred thousand rupiah) subject to 0% MDR,
and (b) transactions exceeding Rp100,000 (one
hundred thousand rupiah) subject to 0.3%
MDR, effective based on industry system
readiness from 1st September and 30th
November 2023 at the latest.
Accelerating QRIS by expanding the innovative
features of QRIS Tuntas (cash withdrawals and
deposits) as well as expanding cross-border
QRIS payments.
Hosting National QRIS Week and the Indonesia
Sovereign Rupiah Festival to celebrate RI
Independence Day.
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