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Financial system stability is a condition that allows the national financial system to function effectively and efficiently, while maintaining resilience to internal and external shocks. By maintaining financial system stability, the intermediation function and other financial services in the financial system remain optimal and contribute to national economic growth. Consequently, financial system stability plays a critical role in maintaining economic stability.

The Global Financial Crisis of 2008/09 taught us that with stronger macrofinancial linkages, a financial system that fails to function properly will reduce the effectiveness of monetary policy, disrupt economic activity and potentially trigger economic moderation or even contraction. Financial system stability, therefore, is the collective responsibility of all financial sector authorities, including Bank Indonesia.

In pursuit of its mandate to maintain financial system stability, Bank Indonesia is legally bound by the following laws and regulations:

  1. Act No. 21 of 2011 concerning the Financial Services Authority (OJK).
  2. Act No. 9 of 2016 concerning the Prevention and Resolution of Financial System Crises.
  3. Bank Indonesia Regulation (PBI) No. 16/11/PBI/2014 concerning Macroprudential Regulation and Supervision.
  4. Act No. 2 of 2020 concerning the enactment of Government Regulation in Lieu of Law No. 1 of 2020 concerning State Financial and Financial System Stability Policies to Contain the Coronavirus Disease 2019 (Covid-19) Pandemic and/or Confront Threats to the National Economy and/or Financial System Stability.
  5. Act No. 4 of 2023 concerning Financial Sector Development and Strengthening (UU PPSK).

In accordance with the Bank Indonesia Act, as amended several times, most recently by Act No. 4 of 2023 concerning Financial Sector Development and Strengthening (UU PPSK), Bank Indonesia is mandated with achieving rupiah stability, maintaining the stability of the payment system as well as preserving financial system stability to support sustainable economic growth. Striving towards those objectives, Bank Indonesia is tasked with macroprudential policymaking.

​Bank Indonesia pursues macroprudential policies through initiatives to foster balanced, quality and sustainable intermediation; mitigate and manage systemic risk; as well as increase economic inclusion, financial inclusion and sustainable finance. In terms of task implementation, Bank Indonesia is authorised to perform the following in accordance with prevailing laws and regulations:

  1. macroprudential regulation,
  2. macroprudential supervision, including conducting inspections and imposing sanctions,
  3. regulation and development of inclusive financing and sustainable finance,
  4. lender of last resort for banks,
  5. reverse repo (repurchase agreements) and/or buying government securities (SBN) held by the Indonesia Deposit Insurance Corporation (IDIC) when IDIC requires liquidity, and
  6. coordination with other relevant authorities. 

Macroprudential Policy

Macroprudential policies aim to maintain financial system stability through efforts to foster balanced, quality and sustainable intermediation; mitigate and manage systemic risk; as well as increase economic inclusion, financial inclusion and sustainable finance.


Balanced, quality and sustainable intermediation reflects a level of sound and inclusive intermediation appropriate to economic capacity. Meanwhile, systemic risk refers to potential instability caused by contagion in part or all of the financial system due to interactions between business size, complexity and interconnectedness as well as procyclicality. Systemic risk is constantly managed and mitigated as part of the financial system crisis prevention measures.  On the other hand, economic and financial inclusion as well as sustainable finance seek to achieve sustainable economic growth.


Macroprudential policies are implemented countercyclically to the financial cycle, targeting conventional and sharia commercial banks based on assessments of the financial system as a whole and its linkages with economic conditions. A credible decision-making process, therefore, demands surveillance of all financial system elements, including the banking system, non-bank financial industry (NBFI), non-financial corporations (NFC), households, financial markets and financial market infrastructures (FMI).


In line with financial market development, Bank Indonesia continues to develop macroprudential policy instruments as part of the Bank Indonesia policy mix, together with monetary and payment system policies. Furthermore, in response to emerging financial behaviour trends and the growing attention of financial sector actors, Bank Indonesia also strengthens macroprudential policy innovation and synergy in terms of digital aspects, financial inclusion and green central banking/green financing.

Macroprudential Supervision​

Bank Indonesia conducts macroprudential supervision through financial system surveillance and/or inspections of banks and/or other institutions to safeguard macroprudential policy implementation.  Surveillance begins with monitoring financial system developments to the identification, analysis, and evaluation of risk.  In practice, banks are required to submit data and information as required and are held accountable for the accuracy of the data and information submitted.

Macroprudential Policy Instruments

Crisis Management Protocol

Coordination between Bank Indonesia and other Authorities/Institutions

MSME Development

Financial Inclusion

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