On July 28, Perry Warjiyo, the Governor of Bank Indonesia, recommended that eligible banks seek funding from international markets to bolster their liquidity. To facilitate this, Bank Indonesia has raised the foreign capital ratio (RPLN) from 30% to 35% effective June 1. Solihin M. Djuhro, Head of the Macroprudential Policy Department at Bank Indonesia, emphasized that this policy will be implemented cautiously, taking into account factors such as domestic and global economic cycles. During economic downturns, banks may utilize the maximum RPLN ratio of 35%; as the economy recovers, the RPLN ratio can be adjusted downward by 5%. Furthermore, Bank Indonesia has decreased the macroprudential liquidity buffer ratio to alleviate liquidity constraints.
