Bank Indonesia Prepares New Protocol for Financial Sources Outside the Economy

Bank Indonesia (“ BI ”) is preparing a new, more integrated Crisis Management Protocol (“ CMP ”) policy to help maintain financial system stability. Head of BI’s Macroprudential Policy Department, Solikin M. Juhro, stated that the new protocol is being prepared to anticipate potential crises that may arise from sources outside the formal economy.

“We are currently drafting and developing its legal framework, both from the operational side and its digital technology,” said Solikin to Hukumonline.

Furthermore, in the context of Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (“ P2SK Law ”), this new protocol will oversee all economic activities in a more profound manner, particularly within Indonesia’s financial sector.

In addition, BI will also optimize its instruments to ensure sufficient liquidity in the domestic money market and banking sector amid heightened global pressures.

“Soon. Since this is a follow-up to the P2SK Law, our mandate is to prepare accommodative macroprudential policies so that risks can be better mitigated,” he explained.