Jakarta: Bank Indonesia (BI) has amended regulations concerning rupiah and foreign currency Reserve Requirements in a bid to mitigate the economic impact of covid-19 outbreak.
"The regulation forms part of Bank Indonesia's accommodative macroprudential policy stance to stimulate bank intermediation and mitigate the economic impact of covid-19," BI stated in a press release on Tuesday, March 31, 2020.
"The regulatory amendment loosens the daily reserve requirement in rupiah for conventional commercial banks, Islamic banks and Islamic business units," BI stated.
The move will support follow-up implementation of the decision taken at the monthly Board of Governors' Meting in March 2020 to expand the incentive of a 50bps looser daily rupiah reserve requirement beyond banks that are engaged in export-import financing to include the financing of micro, small and medium sized enterprises (MSMEs) and other priority sectors.
The incentives regulation for conventional commercial banks, Islamic banks and Islamic business units engaged in export-import financing as well as the financing of MSMEs and other priority sectors will be implemented separately.
The central bank will continue to coordinate with the government, the Financial Services Authority (OJK) and other relevant authorities to carefully monitor the covid-19 pandemic and introduce the coordinated policy measures required to mitigate and reduce the national economic impact.