Bank Indonesia Gives Incentive For Easing Statutory Reserves Up To 1 Percent For Banks

JAKARTA - Bank Indonesia (BI) provides incentives in the form of easing the obligation to fulfill the Rupiah Statutory Reserves (GWM) which must be met on average up to one percent for banks that provide funds for certain and inclusive economic activities.

Launching Antara, Thursday, March 3, BI has determined that incentives will be given to banks that meet the criteria for a maximum of one percent, which will be given in stages.

In detail, the incentive is 0.2 percent for banks that have an average credit/financing growth rate to priority sectors of one percent to six percent and banks that achieve the Macroprudential Inclusive Financing Ratio (RPIM) of 10 percent to 20 percent.

Then, 0.3 percent incentive for banks that have an average value of credit/financing growth to priority sectors of six percent to eight percent and banks that achieve RPIM of 20 percent to 30 percent.

Then, 0.5 percent incentive for banks that have an average value of credit/financing growth to priority sectors above eight percent and banks that achieve RPIM above 30 percent.

The Central Bank stated that the period for providing incentives was valid from March 1, 2022, to December 31, 2024, with BI submitting information on providing incentives to banks through letters and/or other media determined by Bank Indonesia.

The period of providing incentives based on credit or financing to priority sectors is carried out every quarter which is valid for an incentive period of three months, while the provision of incentives based on the achievement of the RPIM is carried out on an annual basis which is valid for an incentive period of 12 months.

The data used as the basis for providing incentives come from the Integrated Commercial Bank Report (LBUT) and if needed, BI can request other reports and/or other information as a basis for providing incentives.

The data used as the basis for providing incentives in 2022 comes from monthly commercial bank reports, monthly reports on monetary stability and financial system for Islamic commercial banks and sharia business units, and/or LBUT.

If the incentive receiving bank does not accurately submit the data used as the basis for providing incentives, BI will impose sanctions on the submission of inaccurate data by Central Bank regulations and re-examine the fulfillment of the incentive recipient bank criteria in the period when the data is inaccurate.

In addition, Bank Indonesia will also recalculate during the period of using inaccurate data on the obligation to fulfill the Statutory Reserves in rupiah, the obligation to fulfill the RIM Current Account or Sharia RIM Current Account, and/or the remuneration or GWM incentive in the form of giving (athaya/gift).

This is carried out based on sharia principles for certain parts of the fulfillment of the Statutory Reserves obligation in rupiah, the calculation of which is carried out by the provisions of BI Regulations.

The monetary authority will evaluate the policy of providing incentives at least once a year.