Bank Indonesia Expands Macroprudential Liquidity Incentives and Cuts Reserve Requirement
The KSSK meeting lowered the maximum reserve requirement to 5 percent and extended liquidity incentives for job-creating lending, effective 1 December 2026.
Bank Indonesia Governor Destry Damayanti announced at the 3 November 2026 KSSK joint meeting of financial authorities that the Macroprudential Liquidity Incentive Policy (KLM) is being expanded for banks lending to employment-generating sectors. The maximum reserve requirement ratio falls from 6 percent to 5 percent, and financing channel incentives reach up to 3 percent of third-party funds, effective 1 December 2026. As of 1 October 2026, banks were enjoying KLM incentives on Rp458.5 trillion of funds.
The rupiah stood at Rp18,145 per US dollar on 2 November, weaker than late September's Rp17,870. Authorities framed the package as supporting liquidity and credit growth, which in turn raises the volume of loan documentation flowing through bank approval processes.
The authorities said the package aims to keep credit flowing to productive sectors while preserving rupiah and financial system stability.