BI Harmonizes GWM Policies for the Organization of the BI-FAST System

With the ultimate goal of improving the efficiency of national retail payment system infrastructure and to facilitating the real-time transfer of funds on a 24/7 basis, Bank Indonesia (“BI”) has launched the BI-Fast Payment (“BI-FAST”) system. [1] In order to ensure the liquidity of banking industry players against a backdrop of this new retail payment system, BI is working to harmonize the organization of the BI-FAST system with relevant monetary policies, specifically policies on statutory reserve requirements.[2]

In order to achieve this goal, BI has now issued Regulation No. 23/16/PBI/2021 (“Third Amendment”), which is the third amendment to Regulation of BI No. 20/3/PBI/2018 on Statutory Reserve Requirements in Rupiah and Foreign Currencies for Conventional Banks, Sharia Banks and Sharia Business Units[3] (“Regulation 20/2018”).[4] In essence, the amendments which are addressed under the Third Amendment encompass the following specific matters: