Bank Indonesia has increased the Macroprudential Liquidity Incentive Policy incentive from 5.5% to 6.0%, effective September 2026, to encourage banks to channel liquidity toward micro, small and medium enterprises (MSMEs) and priority sectors. Speaking at the 100 Indonesian Economists Forum, Governor Destry Damayanti described a more targeted approach calibrated to individual bank conditions, reinforcing the central bank’s broader 2026 effort to address intermediation bottlenecks and accelerate real sector financing. As of early August 2026, banks had received IDR 446.5 trillion in incentives, equivalent to 5.02% of third-party funds. Damayanti identified sizeable undisbursed loans as capacity for future credit growth but stressed that government and business coordination is needed to translate available liquidity into business expansion, productivity and jobs. Financial Services Authority Chair Friderica Widyasari Dewi similarly called for more financing to productive sectors and MSMEs, while Indonesia Deposit Insurance Corporation Chair Anggito Abimanyu emphasized market discipline in deposit pricing to contain bank funding costs.
2026-09-07Bank of Indonesia
Bank Indonesia raises macroprudential liquidity incentive to 6% to steer financing toward MSMEs and priority sectors
Bank Indonesia has increased its macroprudential liquidity incentive from 5.5% to 6.0%, effective September 2026, to direct more bank liquidity toward MSMEs and priority sectors. Banks had received IDR 446.5 trillion in incentives by early August, while Governor Destry Damayanti called for stronger coordination to convert available liquidity and undisbursed loans into productive credit growth.