No. 19/ 41 /DKom  

Bank Indonesia determines Countercyclical Capital Buffer (CCB) of 0% (zero percent) or the same as the current one. It was conveyed in the Meeting of the Board of Directors of Bank Indonesia on 18 May 2017 based on the data evaluation result at the end of the first quarter of 2017.

The percentage is determined among others based on the indication of no excessive credit growth potentially resulting in systemic risks. It is shown by the credit to GDP gap as the buffer guide in the determination of CCB at the lower threshold.

At the end of the first quarter of 2017, credit growth has shown improvement to 9.24% (yoy) in line with the economic growth of 5.01%. Amidst such condition, there is no increase in systemic risks. It is supported among others by the indicator of Indonesian Financial Cycle, which is still within contraction phase.

CCB is one of the macroprudential policy instruments aiming to prevent the increasing systemic risks arising from excessive credit growth. In addition, CCB also functions to absorb losses suffered by banks through additional capital as buffer. Under Regulation of Bank Indonesia (RBI) No.17/22/PBI/2015, Bank Indonesia evaluates the amount and period of CCB enforcement of at least once in 6 (six) months.

CCB of 0% will not affect bank's efforts to improve their intermediation function, so that it is expected to be able to contribute to boost economic growth.