Bank Indonesia Increases Bank Overseas Funding Ratio To 35 Percent

JAKARTA - Bank Indonesia (BI) loosens the Bank's Overseas Funding Ratio (RPLN) from a maximum of 30 percent to 35 percent of bank capital.

Bank Indonesia Governor Perry Warjiyo conveyed that the strengthening of the implementation of the RPLN policy was aimed at increasing the source of bank funding from abroad according to economic needs while still paying attention to the principle of prudence, through the application of contradiclical parameters as an increase in RPLN by 5 percent.

"The strengthening of the RPLN policy is effective from June 1, 2025, and will be further regulated in terms of regulations regarding RPLN," Perry said at a press conference, Wednesday, May 21.

In addition, he said that the easing of liquidity with a reduction in the Macroprudential Liquidity Supporting ratio (PLM) by 100 bps from 5 percent to 4 percent for Conventional Commercial Banks (BUK), with a repo flexibility of 4 percent.

Meanwhile, the ratio of sharia PLM is 100 bps from 3.5 percent to 2.5 percent for Sharia Commercial Banks/Sharia Business Units (BUS/UUS), with a repo flexibility of 2.5 percent.

According to him, this decline is also aimed at providing flexibility in liquidity management by banks, which is effective from June 1, 2025.

Furthermore, he conveyed the strengthening of the publication of the transparency assessment of the Basic Credit Interest Rate (SBDK) by deepening the credit interest rate based on the priority sector which is the scope of the Macroprudential Liquidity Incentive Policy (KLM).