BI Extends PLJP Period for Commercial Banks from 14 Days to 30 Days

Following the promulgation of Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector, Bank Indonesia (“BI”) has now adjusted several provisions in order to assist conventional commercial banks (“Banks”) in resolving any issues that they may be experiencing concerning short-term liquidity loans (Pinjaman Likuiditas Jangka Pendek – “PLJP”). Furthermore, BI is also aiming to strengthen PLJP policies for Banks as a way of fulfilling its function as the lender of last resort.

Against this backdrop, BI recently issued Regulation No. 4 of 2023 on PLJP for Banks (“Regulation 4/2023”), which has been in force since 27 June 2023. The promulgation of Regulation 4/2023 simultaneously repealed and replaced the following Regulations of BI: