With the ultimate goal of improving the effectiveness of Indonesia’s monetary policy in order to maintain economic stability,
[1] Bank Indonesia (“
BI”) has issued Regulation of the Bank Indonesia Board of Governors
No. 20/10/PADG/2018 on Statutory Reserve Requirements in Rupiah and Foreign Currencies for Conventional Banks, Sharia Banks and Sharia Business Units (“
Regulation 10/2018”).
In essence, Regulation 20/2018 sets out a number of guidelines which address the statutory reserve requirements (Giro Wajib Minimum – “GWM”) that must be met by conventional banks (“Banks”), sharia banks (Bank Umum Syariah – “BUS”) and Sharia Business Units (Unit Usaha Syariah – “UUS”). However, for the purpose of concision, this edition of Indonesian Legal Brief will confine its discussion to the following matters:
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