Bank Indonesia Regulation Number 2 of 2026 on Amendments to the Mechanism for Monetary Penalties on the Macroprudential Intermediation Ratio and the Macroprudential Liquidity Buffer

Introduction

On 30 January 2026, Bank Indonesia issued Bank Indonesia Regulation Number 2 of 2026 on the Fifth Amendment to Bank Indonesia Regulation Number 20/4/PBI/2018 on the Macroprudential Intermediation Ratio and the Macroprudential Liquidity Buffer for Conventional Commercial Banks, Islamic Commercial Banks, and Islamic Business Units (“PBI 2/2026”), which took effect on 2 February 2026. This regulation was enacted to ensure the effective implementation of macroprudential policy and to make technical adjustments to the provisions on sanctions.

Bank Indonesia explained that the calculation of sanctions in the form of payment obligations under sharia principles previously used the weighted average reference rate of the indicative return of Interbank Mudarabah Investment Certificates (“SIMA”). However, Bank Indonesia assessed that this reference is no longer relevant to current market conditions due to the continuously declining frequency and volume of transactions. Therefore, Bank Indonesia deemed it necessary to adjust the sanction reference framework to align with future plans for the development of the Islamic money market and to simplify regulation by transferring detailed technical provisions on sanctions into a Regulation of Members of the Board of Governors (“PADG”).

 

Comparison

PBI 2/2026 amends Bank Indonesia Regulation Number 20/4/PBI/2018 on the Macroprudential Intermediation Ratio and the Macroprudential Liquidity Buffer for Conventional Commercial Banks, Islamic Commercial Banks, and Islamic Business Units (“PBI 20/4/PBI/2018”) and its amendments. The following is a comparison between PBI 2/2026 and PBI 20/4/PBI/2018 as well as its amendments:

 

Key Provisions

Removal of Irrelevant Money Market References

In Article 1, Bank Indonesia removes several definitions that previously served as key references in sanction calculations, in particular IndONIA and SIMA. This measure was taken because these references, especially SIMA, have minimal transaction volumes and therefore no longer reflect actual market conditions. In addition, Bank Indonesia amends the definitions of monetary instruments (SBI, SBIS, SDBI, and SukBI) by directly referring to the provisions on monetary control.

Regulation of Payment Obligation Sanctions (Fines)

Bank Indonesia removes the fine calculation formula in Article 29 paragraph (2). Bank Indonesia stipulates that details regarding the amount of sanctions and the procedures for imposing sanctions for violations of the fulfilment of RIM Current Accounts, Sharia RIM Current Accounts, PLM, and Sharia PLM are now regulated in the PADG.

Administrative Sanctions for Reporting

Bank Indonesia states that banks that are late in submitting reports or fail to submit reports remain subject to sanctions in the form of written warnings and payment obligation sanctions. However, the nominal amounts of fines (previously IDR 1 million per day or a flat IDR 30 million) are no longer stipulated in this PBI and will instead be determined in the PADG.

Removal of Technical Clauses on Debiting

Bank Indonesia removes Article 32A and Article 33. The removal of Article 33 eliminates provisions in this PBI regarding the automatic debiting mechanism of banks’ current accounts for the payment of sanctions.

 

Closing

PBI 2/2026 simplifies regulation and enhances the effectiveness of macroprudential policy implementation through adjustments to the sanction mechanism. By removing irrelevant market references such as SIMA and IndONIA and transferring the regulation of detailed technical aspects of fine calculation and sanction procedures into the PADG, Bank Indonesia seeks to establish a legal framework that is aligned with future plans for the development of the Islamic money market.