BANK Indonesia ensures that it will continue to strengthen and issue policies that support economic growth. One of the things that will be strengthened is the Macroprudential Liquidity Policy (LKM) incentive policy that has been and is currently running.
This was conveyed by the Head of the Macroprudential Policy Department of Bank Indonesia, Solikin M. Juhro, in a media briefing at his office, Jakarta, Tuesday (24/9).
“This KLM is a macroprudential policy instrument that complements other instruments. We will evaluate, and of course we will strengthen it again, in the future it will be like that, strengthening will continue to be done,” he said.
The KLM incentive was originally provided by BI to spur national credit growth. Banks that channel credit to priority and productive sectors can enjoy stimulus facilities from the central bank.
Read also: High Benchmark Interest Rates Put Pressure on Household Credit
The incentive is in the form of a reduction in the Minimum Reserve Deposit (GWM) in rupiah that must be fulfilled on average to BI. The total incentive amount is a maximum of 4%. Solikin said that the positive impact of the KLM incentive can actually be seen from the performance of national credit distribution which has consistently grown since January 2024 above 10%.
“Credit grew 11.4%. This is consistent since the beginning of the year growing above 10%. So this also shows that the economy from the financing side is still good,” he explained.
BI data shows that the KLM incentive achievement was 3.44%, or IDR 256.06 trillion in September 2024. Sectorally, the KLM incentive was mainly contributed by the downstream and inclusive sectors, or the Macroprudential Inclusive Financing Ratio (RPIM).
Also read: BI Predicted to Hold Benchmark Interest Rate Again
The realization of KLM per bank group, namely, by Regional Development Banks (BPD) amounting to IDR24.35 trillion and an incentive ratio of 3.17%; state-owned banks IDR118.56 trillion with an incentive ratio of 3.83%; national private banks (BUSN) IDR110.54 trillion with an incentive ratio of 3.23%; and foreign bank branches (KCBA) IDR2.61 trillion with an incentive ratio of 1.61%.
In the future, Solikin said, BI will also strengthen the KLM incentive policy to the labor-intensive industrial sector as a priority in providing the KLM incentive. The goal is for banks to be willing to channel funding to labor-intensive sectors that create large jobs for the community.
“KLM actually gives 50% to the labor-intensive sector, absorbing workers. But we want to be more qualified, to be more prosperous. This is what we will evaluate in the future,” said Solikin.
“We mapped, most of them are labor intensive, it’s just a matter of how we optimize them. Because the nature of the industry has its own concentration. Later we map the labor intensive sector, absorbing workers, we support it through BI policies,” he concluded. (Mir/M-4)
#KLM #incentives #strengthened
