Bank Indonesia expands liquidity incentives for lending that supports jobs
The strengthened measures take effect on 1 December 2026, with incentives for bank financing and money-market deepening.
Bank Indonesia will broaden its macroprudential liquidity incentive policy, known as KLM, to encourage banks to finance business sectors that support job creation, Governor Destry Damayanti said on 3 November 2026.
Speaking in Jakarta at a press conference following a regular Financial System Stability Committee meeting, Destry said the central bank would contribute to efforts to expand employment through the banking incentives. The strengthened policy will take effect on 1 December 2026.
The latest KLM incentives involve lowering banks’ reserve requirements from 6 per cent in September 2026 to a maximum of 5 per cent. The financing-channel incentive is capped at 3 per cent of third-party funds, with broader support for bank lending and financing to businesses that help create jobs.
A separate incentive for money-market deepening, capped at 2 per cent, is being strengthened to encourage liquidity redistribution and bank intermediation. Destry said banks had received Rp458.5 trillion in KLM incentives as of 1 October 2026.
