Bank Indonesia Revises Macroprudential Liquidity Incentive Policy: Sectoral Financing Cap Reduced to 4.5% as Interest Rate Incentive Rises to 1%

Bank Indonesia (“BI”) has issued Regulation of the Board of Governors No. 22 of 2026 on the Amendment (“Amendment”) to Regulation of the BI Board of Governors No. 27 of 2025 (“Regulation 27/2025”) on the Implementing Regulation of the Macroprudential Liquidity Incentive Policy (Kebijakan Insentif Likuiditas Makroprudensial – “KLM”). The Amendment introduces purchases of corporate securities and the collection of funds other than third-party funds as new activities eligible for the KLM.[1] The Amendment officially came into force on 1 August 2026.[2]