Investor Presentaiton
Bank Indonesia Policy Mix: April 2023
B BANK INDONESIA
BANK SENTRAL REPUBLIK INDONESIA
The BI Board of Governors agreed on 17th and 18th April 2023 to hold the BI 7-Day Reverse Repo Rate at 5.75%,
while also maintaining the Deposit Facility (DF) rate at 5.00% and Lending Facility (LF) rate at 6.50%.
%
Rp
Hold the
BI 7-Day
Reverse
Repo
Rate at
5.75%
Strengthening
monetary
operations to
increase the
effectiveness
of monetary
policy
transmission.
• Strengthening
rupiah
stabilisation policy as part
of the measures to
control
particularly
inflation,
imported
inflation, through 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.
• Continuing the twist
operation by selling short-
SBN
term
in the
secondary market to
increase the attractiveness
of SBN yields for foreign
portfolio investment inflows
to strengthen rupiah
stabilisation measures.
Maintaining accommodative monetary policy by
holding: (a) the Countercyclical Capital Buffer (CCyB)
at 0%, (b) Macroprudential Intermediation Ratio (MIR)
in the 84-94% range, and (c) Macroprudential Liquidity
Buffer (MPLB) at 6% with 6% repo flexibility and the
Sharia MPLB at 4.5% with 4.5% repo flexibility.
Increasing the macroprudential policy incentives to
revive bank lending to priority sectors and Slow
Starters, including People's Business Loans (KUR) and
green finance, effective from 1 April 2023:
Increasing the total macroprudential incentive as
available to banks from 200bps to 280bps,
comprising incentives for lending to priority sectors
up to a maximum of 1.5%, a twofold increase in the
incentives for extending People's Business Loans
(KUR) and MSME loans/financing up to 1%, and
incentives for disbursing green finance up to 0.3%.
• Reallocating the target of macroprudential incentives
to Slow Starters by maintaining a low credit growth
threshold at a minimum of 1%, while raising the
threshold for Growth Drivers and Resilient subsectors
from 1% to 3% and 5% respectively.
Continuing prime lending rate (PLR) transparency
policy with a focus lending rates in sectors
associated with downstreaming
Strengthening payment system
digitalisation policy to
improve transaction efficiency
as well as the economic-
financial digital ecosystem by:
(i) implementing cross-border
QRIS
payment
interconnectivity between
Indonesia and Malaysia, and
(ii) rolling out the physical
domestic government credit
card in close coordination
with the Government and
Indonesia Payment System
Association (ASPI) to coincide
with the Indonesia Digital
Economy and Finance Festival
(FEKDI) at the beginning of
May 2023.
Strengthening payment system
policy during the holy fasting
month of Ramadan and Eid-
ul-Fitr 1444 H.
Strengthening
international
cooperation with
other central banks
and authorities in
partner countries,
while promoting
trade and
investment in priority
sectors in synergy
with relevant
institutions. In
addition, Bank
Indonesia is
continuing to
collaborate with
relevant government
ministries/agencies
to ensure a
successful ASEAN
Chairmanship in
2023, particularly in
terms of the finance
track.
Source: Bank Indonesia
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