BI Revises GWM for Conventional Banks, Sharia Banks and Sharia Business Units

In an effort to control inflation, ensure the stability of the rupiah exchange rate and encourage economic growth amid mounting external pressures, Bank Indonesia (“ BI ”) has decided to accelerate the normalization of its liquidity policy through a gradual increase in the statutory reserve requirement (giro wajib minimum –“ GWM ”) in rupiah. [1] This new policy is outlined in Regulation of the BI Board of Governors No. 24/8/PADG/2022 (“ Regulation 8/2022 ”) on the Implementing Regulation on the Fulfillment of the GWM in Rupiah and Foreign Currencies by Conventional Commercial Banks (Bank Umum Konvensional– “ BUK ”), Sharia Commercial Banks (Bank Umum Syariah– “ BUS ”) and Sharia Business Units (Unit Usaha Syariah– “ UUS ”).