Bank Indonesia Says Liquidity Measure Will Support Government Housing Goal

BANK INDONESIA / BI - JAKARTA. Indonesia's central bank said it will increase to 80 trillion rupiah ($4.9 billion) the amount of liquidity freed up by reducing reserve requirements for banks that lend to the property sector, to support the government's housing goal.

Bank Indonesia (BI) has been using similar liquidity measures to spur credit growth since 2023, by reducing the reserves banks are required to hold if they lend to sectors that are important for economic growth.