Bank Indonesia to inject $5bn liquidity into banking sector

Bank Indonesia’s (BI) decision to reduce the secondary reserve requirement from 5 to 4 per cent starting in June will give banks 78.45 trillion rupiah ($4.84 billion) in additional liquidity, allowing for more flexible management.

BI has announced an increase in the maximum level of foreign funding local banks can take, from 30 to 35 per cent of their capital starting in June. This policy aims to boost liquidity and support loan growth, said the Bank’s head of macroprudential policy Solikin M. Juhro.

Attribution: Reuters
Subediting: M. S. Salama