The mandatory minimum MSME lending requirements will be increased in phases. Lenders that fail to meet the thresholds will face a maximum penalty of IDR 5 billion.
Under the framework, 16 banks and payment service providers will be required to adopt open API systems by June 2022.
The full commercial launch will take place in Q1 2022. Indonesia has separately also launched a national open API payment standard.
The launch of Refinitiv's Matching trading system is expected to increase liquidity, efficiency and price transparency.
The MoU aims to strengthen policy cooperation on AML/CTF in payments. Indonesia is seeking to become a member of the FATF.
The central bank is assessing which platform and technology it will use to issue a digital rupiah as a legal digital payment instrument in Indonesia.
The Indonesia Deposit Insurance Corporation can now raise its own funding and provide temporary liquidity support to banks outside of resolution.
President Joko Widodo's plan to return bank oversight functions to Bank Indonesia is unlikely to be an immediate fix for the ongoing Covid-19 related challenges.
Bank Indonesia abandoned the practice of quantitative easing in 1999 to ensure fiscal discipline in the aftermath of the Asian financial crisis.
The measures include a 200bp RRR cut for banks and a 50bp cut for Islamic banks. The central bank may also start buying government bonds in the primary market in two weeks.
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