Bank Indonesia Amends Rupiah and Foreign Currency Reserve Requirements - Bank Sentral Republik Indonesia
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June 01, 2020

Bank Indonesia has amended regulations concerning Rupiah and Foreign Currency Reserve Requirements through Bank Indonesia Regulation (PBI) No. 22/3/PBI/2020, as an amendment to Bank Indonesia Regulation (PBI) No. 20/3/PBI/2018 concerning Statutory Reserve Requirements in Rupiah and a Foreign Currency for Conventional Commercial Banks, Islamic Banks and Islamic Business Units, effective from 26th March 2020. The regulation forms part of Bank Indonesia's accommodative macroprudential policy stance to stimulate bank intermediation and mitigate the economic impact of COVID-19.

The regulatory amendment loosens the daily reserve requirement in rupiah for conventional commercial banks, Islamic banks and Islamic business units. The move supports follow-up implementation of the decision taken at the monthly RGD meeting in March 2020 to expand the incentive of a 50bps looser daily rupiah reserve requirement beyond banks that are engaged in export-import financing to include the financing of MSMEs and other priority sectors. The incentives regulation for conventional commercial banks, Islamic banks and Islamic business units engaged in export-import financing as well as the financing of MSMEs and other priority sectors will be implemented separately.

Bank Indonesia will continue to coordinate with the Government, Indonesian Financial Services Authority (OJK) and other relevant authorities to carefully monitor the COVID-19 pandemic and introduce the coordinated policy measures required to mitigate and reduce the national economic impact.

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