Flooring Guide by Cinvex – Bank Indonesia (BI) continues to enhance its support for national economic growth by optimizing its Macroprudential Liquidity Incentive Policy (KLM). As of the first week of April 2026, the total KLM incentives disbursed have reached a substantial Rp 427.9 trillion.
Bank Indonesia Governor Perry Warjiyo emphasized that this policy is strategically designed to boost banking credit and financing, particularly targeting national priority sectors. During a press conference held by the Financial System Stability Committee (KSSK) in Jakarta on Friday, May 8, Perry elaborated that the strengthened KLM, implemented since December 16, 2025, aims to provide higher incentives for banks actively channeling credit and financing to specific sectors identified by Bank Indonesia.
Furthermore, the enhanced KLM also rewards banks that are responsive in lowering new loan interest rates, aligning with BI’s overarching interest rate policy direction. This crucial step ensures a more effective transmission of monetary easing directly into the real sector, fostering broader economic activity.
Perry detailed the allocation of the Rp 427.9 trillion in incentives, explaining that Rp 358.0 trillion has been channeled through the lending channel. This particular scheme is designated for banks demonstrating active credit disbursement to identified priority sectors. The remaining Rp 69.9 trillion has been distributed via the interest rate channel, which targets banks that proactively reduce interest rates on new loans, thereby ensuring businesses gain access to more affordable financing.
Analyzing the distribution across various bank groups, Perry revealed that state-owned banks (BUMN) received the largest share of KLM disbursements, totaling Rp 224.0 trillion. National Private Commercial Banks (BUSN) followed, securing Rp 166.6 trillion, with Regional Development Banks (BPD) receiving Rp 29.6 trillion, and Foreign Bank Branch Offices (KCBA) obtaining Rp 7.8 trillion.
On a sectoral basis, these vital liquidity incentives have been strategically directed to a wide array of priority sectors. This extensive support spans agriculture, industry and downstream processing, services (including the creative economy), construction, real estate and housing, as well as micro, small, and medium enterprises (MSMEs), cooperatives, financial inclusion initiatives, and sustainable financing endeavors.
To further accelerate the efficient disbursement of these critical KLM funds, Perry affirmed that Bank Indonesia launched the “Percepatan Intermediasi Indonesia” (PINISI 2026) initiative at the end of April 2026.
Through PINISI 2026, Bank Indonesia is actively forging connections between the KSSK, regulators, investors, and the banking sector. A key objective of PINISI is to robustly support the disbursement of credit to micro, small, and medium enterprises (MSMEs). Perry highlighted that coordination with the KSSK ensures the stability of credit flow via PINISI, with policies specifically tailored for MSMEs, including KLM incentives amounting to 1 percent of Third-Party Funds (DPK).
Summary
Bank Indonesia has intensified its support for national economic growth by optimizing the Macroprudential Liquidity Incentive Policy (KLM), which reached a total disbursement of Rp 427.9 trillion as of early April 2026. This initiative focuses on boosting credit for priority sectors—such as agriculture, MSMEs, and sustainable financing—while rewarding banks that lower interest rates on new loans. The policy aims to ensure effective monetary transmission, making financing more affordable for the real sector.
The majority of these incentives were directed toward state-owned banks, with further distributions allocated to national private banks, regional development banks, and foreign bank branches. To accelerate fund disbursement and improve credit flow to MSMEs, Bank Indonesia also introduced the PINISI 2026 initiative. This program fosters stronger coordination between regulators and the banking sector, providing specific support for micro, small, and medium enterprises through targeted liquidity incentives.