BI Injects Rp393 Trillion in Liquidity into Banking Sector as of Early October 2025

Key Points

•    Bank Indonesia (BI) has injected Rp393 trillion in liquidity through its Macroprudential Liquidity Incentive Policy (KLM) as of early October 2025.

•    KLM funds were distributed to state-owned banks, private banks, regional development banks (BPD), and KCBA, with a focus on the agriculture, manufacturing, real estate, tourism, and MSME sectors.

•    The performance-based KLM policy will take effect on December 1, 2025, with a maximum total incentive of 5.5 percent of Third Party Funds (DPK).

Jakarta – Bank Indonesia (BI) noted that as of the first week of October 2025, the total Macroprudential Liquidity Incentive Policy (KLM) provided to banks reached IDR 393 trillion.

BI Governor Perry Warjiyo explained that macroprudential policies continue to be strengthened to encourage lower interest rates, increased liquidity, and higher credit growth to support higher economic growth.

“As of the first week of October 2025, the total KLM incentive reached Rp393 trillion,” Perry said at the KSSK Quarterly Press Conference, quoted on Tuesday, November 4, 2025.

Perry detailed that the incentives had been distributed to state-owned banks amounting to Rp173.6 trillion. Then, to National Private Commercial Banks (BUSN) amounting to Rp174.4 trillion, Regional Development Banks (BPD) amounting to Rp39.1 trillion, and Foreign Bank Branches (KCBA) amounting to Rp5.7 trillion.

Sectorally, KLM incentives have been distributed to priority sectors, namely agriculture, trade and manufacturing, real estate, public housing and construction, transportation, warehousing, tourism, creative economy, MSMEs, ultra-micro, and green sectors.

New Policy Effective December 2025

Perry added that the strengthening of performance-based and forward-looking macroprudential liquidity incentive policies will take effect on December 1, 2025.

The policy is provided through liquidity incentives for banks’ commitments to channel credit/financing to certain sectors (lending channel) and set credit/financing interest rates in line with BI’s policy interest rate direction (interest rate channel).

The amount of KLM incentives consists of lending channel incentives of up to 5 percent of DPK and interest rate channel incentives of up to 0.5 percent of DPK, bringing the total incentive to a maximum of 5.5 percent of DPK.

Support for Priority Sectors

The sectors that receive lending channel incentives include agriculture, industry and downstreaming, services (including the creative economy), construction, real estate and housing, as well as MSMEs, cooperatives, inclusion and sustainability.

Perry explained that the amount of lending channel incentives will take into account the realization of credit/financing growth compared to the credit/financing growth commitment in the previous period.

“Meanwhile, the amount of interest rate channel incentives is based on the speed at which banks adjust new credit/financing interest rates to BI’s policy interest rates,” said Perry. (*)

Editor: Yulian Saputra

BI Injects Rp393 Trillion in Liquidity into Banking Sector as of Early October 2025

Key Points

• Bank Indonesia (BI) has injected Rp393 trillion in liquidity through its Macroprudential Liquidity Incentive Policy (KLM) as of early October 2025.

• KLM funds were distributed to state-owned banks, private banks, regional development banks (BPD), and KCBA, with a focus on the agriculture, manufacturing, real estate, tourism, and MSME sectors.

• The performance-based KLM policy will take effect on December 1, 2025, with a maximum total incentive of 5.5 percent of Third Party Funds (DPK).

Jakarta – Bank Indonesia (BI) noted that as of the first week of October 2025, the total Macroprudential Liquidity Incentive Policy (KLM) provided to banks reached IDR 393 trillion.

BI Governor Perry Warjiyo explained that macroprudential policies continue to be strengthened to encourage lower interest rates, increased liquidity, and higher credit growth to support higher economic growth.

“As of the first week of October 2025, the total KLM incentive reached Rp393 trillion,” Perry said at the KSSK Quarterly Press Conference, quoted on Tuesday, November 4, 2025.

Perry detailed that the incentives had been distributed to state-owned banks amounting to Rp173.6 trillion. Then, to National Private Commercial Banks (BUSN) amounting to Rp174.4 trillion, Regional Development Banks (BPD) amounting to Rp39.1 trillion, and Foreign Bank Branches (KCBA) amounting to Rp5.7 trillion.

Sectorally, KLM incentives have been distributed to priority sectors, namely agriculture, trade and manufacturing, real estate, public housing and construction, transportation, warehousing, tourism, creative economy, MSMEs, ultra-micro, and green sectors.

New Policy Effective December 2025

Perry added that the strengthening of performance-based and forward-looking macroprudential liquidity incentive policies will take effect on December 1, 2025.

The policy is provided through liquidity incentives for banks’ commitments to channel credit/financing to certain sectors (lending channel) and set credit/financing interest rates in line with BI’s policy interest rate direction (interest rate channel).

The amount of KLM incentives consists of lending channel incentives of up to 5 percent of DPK and interest rate channel incentives of up to 0.5 percent of DPK, bringing the total incentive to a maximum of 5.5 percent of DPK.

Support for Priority Sectors

The sectors that receive lending channel incentives include agriculture, industry and downstreaming, services (including the creative economy), construction, real estate and housing, as well as MSMEs, cooperatives, inclusion and sustainability.

Perry explained that the amount of lending channel incentives will take into account the realization of credit/financing growth compared to the credit/financing growth commitment in the previous period.

“Meanwhile, the amount of interest rate channel incentives is based on the speed at which banks adjust new credit/financing interest rates to BI’s policy interest rates,” said Perry. (*)

Editor: Yulian Saputra