Information about the organisation, transformation and history of Bank Indonesia as the central bank of the Republic of Indonesia.
Information about the main functions and responsibilities of Bank Indonesia to achieve and maintain rupiah stability.
Information about the rupiah as the currency of the Republic of Indonesia managed by Bank Indonesia pursuant to prevailing laws and regulations.
Bank Indonesia’s publications include regulations, reports and papers, as well as the calendar of activities
Statistics include historical indicators for all sectors under the jurisdiction of Bank Indonesia.
Bank Indonesia offers various services, including requests for information, complaints, licensing and so on.
Bank Indonesia maintains public information in accordance with the Public Information Disclosure Act of 2008.
Macroprudential incentives are offered by Bank Indonesia to banks extending loans/financing to priority and green sectors and MSMEs and/or banks meeting the RPIM target in the form of lower rupiah reserve requirements. The incentives are expected to revive the bank intermediation function, specifically in priority sectors and slow starters, while increasing disbursements of People's Business Loans (KUR) and green loans/financing, to support the economic recovery.
The latest regulations concerning Macroprudential Incentive policy are as follows:
Macroprudential Inclusive Financing Ratio (RPIM)
The Macroprudential Inclusive Financing Ratio (RPIM) is a policy innovation to revive growth of disbursed loans, particularly to MSMEs, MSME cooperatives and low-income individuals, and accelerate the economic recovery while strengthening financial inclusion. RPIM also indicates the portion of inclusive financing in the banking industry. Fulfilment of the RPIM ratio is adjusted to the expertise and business model of each respective bank in accordance with risk management and prudential principles, as well as the bank's contribution to improving financial inclusion.
RPIM financing comprises three modalities as follows:
The latest regulations concerning RPIM policy are as follows:
The Loan-to-Value or Financing-to-Value (LTV/FTV) Ratio is the ratio of the value of the loans/financing disbursed by a Conventional or Sharia Commercial Bank against the value of collateral in the form of property when the loan is originated based on the most recent evaluation. On the other hand, a downpayment on an automotive loan/financing is the initial payment as a percentage of the value of the motor vehicle paid by the borrower or customer.
This countercyclical macroprudential policy instrument aims to maintain financial system stability and mitigate systemic risk. With an accommodative macroprudential policy stance, this also aims to revive a balanced, quality and sustainable bank intermediation function, thus supporting national economic growth, while maintaining the stability of the financial system.
The latest regulations concerning LTV/FTV policy are as follows:
The Countercyclical Capital Buffer (CCyB) is additional capital that functions as a buffer to anticipate losses caused by excessive credit growth with the potential to undermine financial system stability.
The risks are associated with procyclical lending in the banking industry, where banks tend to increase lending during an expansionary economic boom period and restrict lending during a contractionary economic bust period. Procyclicality in Indonesia necessitated CCyB implementation, as evidenced by the direct correlation between credit growth and economic growth.
The additional capital buffer that must be maintained by banks during an expansionary period may be used when the banks experience pressures during an economic contraction, thus maintaining continuity of the bank intermediation function. The CCyB is dynamic within a 0-2.5% range of risk-weighted assets (RWA) in the banking industry. Bank Indonesia, therefore, evaluates the CCyB level at least once every six months.
In general, Bank Indonesia will raise the CCyB during an economic boom and lower the level during an economic contraction. CCyB policy is linked to bank capital regulations issued by the Indonesian Financial Services Authority (OJK) and is expected to strengthen the resilience of the banking industry.
The latest CCyB provisions are regulated in accordance with PBI No. 17/22/PBI/2015 concerning the Countercyclical Capital Buffer.
(Sharia) MIR policy accommodates diverse forms of bank intermediation by including bank investment in securities. Furthermore, (sharia) MIR policy also promotes the creation of a balanced and quality intermediation function, thus preventing and reducing risk and procyclical behaviour in the banking industry. This countercyclical macroprudential policy instrument can be adjusted in line with changes in economic and financial conditions.
The (sharia) MIR Giro is the balance of rupiah demand deposits held at Bank Indonesia that must be maintained by conventional commercial banks, sharia banks and sharia business units to meet the (sharia) MIR.
The latest regulations concerning (sharia) MIR policy are as follows:
The Macroprudential Liquidity Buffer (MPLB) and Sharia Macroprudential Liquidity Buffer (Sharia MPLB) are minimum liquidity reserves denominated in rupiah that must be maintained by conventional commercial banks and sharia banks in the form of rupiah securities that can be used in monetary operations, the level of which is set by Bank Indonesia as a percentage of rupiah third party funds (TPF).
The (sharia) MPLB is flexible, meaning that under certain conditions rupiah securities may be transacted through repurchase agreements (repo) with Bank Indonesia in terms of Open Market Operations (OMO) as a percentage of rupiah third party funds at the conventional commercial bank or sharia bank.
(Sharia) MPLB policy is expected to overcome procyclical liquidity issues as a liquidity-based macroprudential instrument applicable to all banks. The latest regulations concerning (sharia) MPLB policy are as follows:
As the central bank, Bank Indonesia consistently implements its function as Lender of Last Resort (LoLR). According to the LoLR framework, Bank Indonesia can disburse Short-Term Liquidity Assistance (PLJP) and Sharia Short-Term Liquidity Assistance (PLJPS). PLJP/ PLJPS aims to overcome the short-term liquidity difficulties experienced by banks and, thus, maintain financial system stability and public confidence. Short-term liquidity difficulties are the conditions experienced by banks caused when fund inflows are insufficient compared to fund outflows denominated in rupiah, thereby leaving the bank unable to meet minimum reserve requirements.
The latest regulations concerning (sharia) PLJP policy are as follows: