Indonesia's central bank will reduce the secondary reserve requirement from 5% to 4% starting in June, a move that will free up IDR78.45tn ($4.84bn) in liquidity for banks to manage more flexibly, according to a senior official.
The announcement was made by Solikin M. Juhro, head of macroprudential policy at Bank Indonesia, during a press conference.
The central bank revealed the planned reserve requirement cut last week, alongside its third-interest rate reduction since September; measures aimed at stimulating growth in Southeast Asia’s largest economy.