BI Sets Obligations for Fulfillment of Macroprudential Inclusive Financing Ratio by Banks

In a bid to encourage the development and the strengthening of the country’s micro-, small- and medium-scale enterprises (usaha mikro, kecil dan menengah – “UMKM”), as well as the empowerment of low-income individuals (perorangan berpenghasilan rendah – “PBR”), Bank Indonesia (“BI”) has issued Regulation No. 23/13/PBI/2021 (“Regulation 13/2021”), which introduces a new macroprudential policy instrument that takes the form of a macroprudential inclusive financing ratio (rasio pembiayaan inklusif makroprudensial – “RPIM”).[1]