No: 27/202/DKom
Against a backdrop of uncertain and unpredictable global conditions, the opportunity for resilient, competitive and dynamic economic growth in Indonesia remains large. To that end, we must respond to the main challenges at home, namely maintaining an optimal balance between economic stability and efforts to drive growth. That was the key takeaway delivered by the Deputy Governor of Bank Indonesia, Juda Agung, during the launch of the 45th edition of the Financial Stability Review (FSR 45), August 2025, entitled “Reviving Intermediation and Strengthening Resilience amid Increasing Global Uncertainty", at Bank Indonesia in Jakarta on 29th August 2025.
In terms of liquidity, accommodative macroprudential policy, monetary operations and liquidity incentives have afforded the banking industry more room to manoeuvre. Moving forward, banks must be adequately prepared to reallocate liquidity to credit quickly and courageous enough to accelerate reductions in funding and lending rates. Seeking to accelerate monetary and macroprudential policy transmission, Bank Indonesia has focused its policies on four key areas. First, considering further room for monetary easing through BI-Rate reductions to accelerate transmission. Second, strengthening transmission effectiveness by adjusting the structure of monetary instruments and FX swaps. Third, increasing money market liquidity through measured adjustments to Bank Indonesia Rupiah Securities (SRBI) and buying government securities (SBN) in the secondary market. Fourth, maintaining an accommodative macroprudential policy stance to revive lending/financing, lower interest rates and strengthen banking industry resilience.
FSR 45, entitled “Reviving Intermediation and Strengthening Resilience amid Increasing Global Uncertainty", confirms that financial system stability in Indonesia was maintained in the first semester of 2025 against a backdrop of global turmoil and uncertainty, underpinned by resilience in terms of the banking industry, non-bank financial industry, as well as the corporate and household sectors. During the first half of 2025, accommodative macroprudential policy focused on efforts to stimulate growth, among others, by strengthening Macroprudential Liquidity Incentive Policy (KLM). Bank Indonesia raised the cap on KLM incentives from 4% to 5% from 1st April 2025. As of the first week of 2025, Bank Indonesia disbursed KLM incentives totalling Rp384 trillion, with Rp171.5 trillion allocated to state-owned banks, Rp169.2 trillion to national private commercial banks, Rp37.2 trillion to regional government banks and Rp5.7 trillion to foreign bank branches. By sector, KLM incentives were allocated to various priority sectors, namely agriculture, real estate, public housing, construction, trade and manufacturing, transportation, storage, tourism and the creative economy, as well as the MSME, ultra micro and green sectors.
Seeking to capture the prevailing views of relevant authorities and the financial sector concerning the latest FSS developments, Bank Indonesia hosted a national seminar, entitled 'Navigating Global Economic Challenges through Intermediation and Financial System Resilience', with the Assistant Governor of Bank Indonesia, Solikin M. Juhro, Head of BPS-Statistics Indonesia, Amalia Adininggar Widyasanti, and Chief Economist of PT Bank Mandiri (Persero), Tbk, Andry Asmoro, participating as speakers and resource persons.
FSR 45 is expected to serve as a strategic compass, honing perspectives, strengthening confidence and preparing mitigation measures to confront the increasingly complex risks faced by all stakeholders to help understand financial system dynamics and formulate appropriate mitigation measures. “Through the spirit of collaboration, let us make sure the existing liquidity is mobilised beyond the banking industry as a true driving force of the economy to create more inclusive, solid and sustainable growth," added Deputy Juda to close his remarks.
Jakarta, 29th August 2025
Communication Department
Junanto Herdiawan
Executive Director
