Bank Indonesia to Provide Liquidity for Banks Involved in Credit Restructuring

In its efforts to support Indonesia's economic recovery, Bank Indonesia (BI) will provide liquidity to local financial institutions involved in a debt restructuring program for micro, small and medium-sized enterprises (MSMEs).  

The Governor of BI, Perry Warjiyo stated that banks could use sovereign debt papers as security against repurchase agreements (repo) with BI, in order to receive additional liquidity for MSMEs debt restructuring. However, Warjiyo also noted that only few banks did not hold sufficient securities and hence the Government of Indonesia’s need for fund placement would be minimal.

In support of the MSMEs debt restructuring program, the Government has set asi...