JAKARTA – Bank Indonesia (BI) will increase the portion of the Macroprudential Liquidity Incentive Policy (KLM) assistance to IDR 290 trillion for hundreds of banks starting next year.

Juda Agung, BI's Deputy Governor, stated that the KLM distribution next year will focus on sectors that generate the most employment. These sectors include agriculture, trade, housing, and manufacturing industries.

For the record, the KLM allocation for next year will rise by 15.54%, an additional liquidity increase of IDR 39 trillion, up from IDR 251 trillion this year to IDR 290 trillion.

“There is an additional liquidity of IDR 39 trillion from IDR 251 trillion to IDR 290 trillion,” Agung mentioned during a press conference after BI’s Board of Governors meeting in November 2024, held on Wednesday (18/12).

From the total KLM allocation, state-owned banks (BUMN) will receive IDR 126 trillion. Meanwhile, 37 private banks will get IDR 129 trillion, 39 Regional Development Banks (BPD) will receive IDR 30 trillion, and 7 foreign branch banks will receive IDR 4.9 trillion. "In total, there are 124 banks," Juda explained.

The KLM policy is a refinement of the Macroprudential Incentive Policy, which has been in place since March 2022. This policy has undergone several stages of reformulation to strengthen macroprudential policy stimulus. (KR/ZH)