Regulation of Bank Indonesia No. 24/5/PBI/2022 on Incentives for Banks Providing Funding for Certain and Inclusive Economic Activities
Enforcement Date: 1 March 2022
- Bank Indonesia (“BI”) is authorized to provide incentives to commercial banks, sharia commercial banks and sharia business units (“Banks”) in form of leniency regarding the obligation to fulfill the average minimum statutory reserve (giro wajib minimum – “GWM”) requirement in the rupiah currency, provided that Banks meet the following requirements: 1) Provide credit/funding to businesses operating within priority sectors; 2) Comply with the Macroprudential Inclusive Financing Ratio (Rasio Pembiayaan Inklusif Makroprudensial – “RPIM”) and/or 3) Provide other forms of funding, as determined by BI.
- BI will grant the aforementioned GWM leniency incentive based on certain data, specifically data that proves that the relevant Banks have provided the abovementioned funding and have been classified as being eligible to receive incentives. Furthermore, BI may also request other information and/or reports for the purpose of the granting of incentives from the relevant Banks, as required. Banks should submit said requested information and/or reports accurately, otherwise they may be subject to the imposition of administrative sanctions in form of written reprimands.
- Banks that have been granted incentives will be monitored by BI. If Banks that are recipients of incentives are discovered to have submitted inaccurate information, then sanctions will be imposed upon them.
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