GWM Bank Naik Jadi 6% Per 1 Juni 2022

Summary

Starting in July 2022, Bank Indonesia introduced gradual changes to the mandatory minimum reserve requirement (Giro Wajib Minimum or GWM). The GWM rate will rise from 6% to 9% over several months, ensuring that banks' ability to provide credit and financing remains intact. The changes also affect Sharia banks and units, with their GWM rates adjusting from 4% to 7.5% by September 2022. The policy aims to support economic growth while maintaining the stability of the financial system and contributing to the funding of the national budget.

Takeaways

• 😀 Bank Indonesia will increase the reserve requirement (GWM) gradually starting from July 2022.
• 😀 The GWM increase will be implemented in stages to ensure smooth adjustments without disrupting banking operations.
• 😀 The first phase of the increase will raise the GWM from 6% to 7.5% starting on July 1, 2022.
• 😀 By September 2022, the GWM will increase further to 9%.
• 😀 For Islamic banks and Islamic business units (UUS), the minimum GWM for Rupiah will be raised in stages from 4% to 7.5%.
• 😀 The GWM increase will not negatively affect the ability of banks to distribute credit or financing to businesses.
• 😀 The policy is designed to encourage participation in government securities (SBN) for financing the national budget (APBN).
• 😀 A key aspect of the policy is providing incentives for the GWM adjustments, effective from March 2022.
• 😀 The gradual increase in GWM will start with a 0.5% increment in May 2022, reaching 4.5% for Rupiah in June 2022.
• 😀 Bank Indonesia's Governor, Perry Warjiyo, emphasized that these changes are intended to strengthen Indonesia's financial system and economy.

Q & A

What is the main topic of the transcript?

The main topic is about the changes in Bank Indonesia's monetary policy regarding the mandatory reserve requirement (GWM) for banks, which will be gradually increased starting from July 2022.

What is the purpose of increasing the mandatory reserve requirement (GWM)?

The increase in GWM is aimed at ensuring that the banking system remains stable and able to manage liquidity while also participating in government bond purchases and financing the national budget (APBN).

When did the policy changes regarding GWM begin?

The policy changes began on March 1, 2022, with a gradual increase in the GWM percentages.

How much will the GWM increase from June 1, 2022?

Starting from June 1, 2022, the GWM will increase to 7.5% for the general banks and 6% for Sharia banks.

What are the specific dates for further increases in GWM percentages?

The GWM for general banks will increase to 9% starting from September 1, 2022, and for Sharia banks, the GWM will increase to 7.5% starting from September 1, 2022.

What is the GWM percentage for Sharia banks before the changes in 2022?

Before the changes, the GWM for Sharia banks was 4%, which will increase to 4.5% starting from June 1, 2022.

What is the significance of the GWM changes for the banking system?

The changes are designed to ensure banks maintain a proper balance of liquidity while being incentivized to finance businesses and contribute to the national budget through government bond purchases.

How will the GWM changes impact credit distribution by banks?

The GWM changes are structured to not reduce the ability of banks to distribute credit or financing to businesses, ensuring continued economic support.

What role do incentives play in the implementation of the new GWM policy?

Incentives are provided to encourage banks to manage their reserves effectively without compromising their lending activities or participation in government bond purchases.

How are these GWM policy changes aligned with Bank Indonesia's broader goals?

These policy changes align with Bank Indonesia's goals of maintaining financial stability, enhancing the banking system's liquidity management, and supporting the national economy through participation in government financing mechanisms.