Bank Indonesia has recently issued new regulations to assist conventional commercial banks in obtaining a short-term liquidity loans from Bank Indonesia.* The regulations set out eligibility criteria, which relate to solvency, cashflow and adequacy of collateral. The regulations state that the maximum period for each loan is 90 days, which includes two permitted extensions. Each loan is accompanied by a set of obligations and conditions, including reporting requirements. Failure to comply may result in sanctions.

*Regulation No. 4 of 2023 on Short-Term Liquidity Loans for Conventional Commercial Banks.