Regulatory Alerts2010-10-04
Bank Indonesia Regulation No. 12/19/PBI/2010 on Statutory Reserves for Commercial Banks
Bank Indonesia issued Regulation No. 12/19/PBI/2010 to reorganize statutory reserve requirements for commercial banks in order to control inflationary pressures and manage persistent excess banking liquidity. The regulation mandates that banks maintain Primary, Secondary, and Loan-to-Deposit Ratio statutory reserves in Rupiah, while Foreign Exchange Banks must additionally fulfill reserves in foreign currency. It establishes specific reserve ratios, calculation methodologies based on Third-Party Funds, and a framework for interest incentives and sanctions for non-compliance.
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