JAKARTA, May 26 (Xinhua) -- Indonesia's central bank, Bank Indonesia, will inject 78.45 trillion rupiahs (4.82 billion U.S. dollars) into banks starting in June to enhance liquidity, a senior official announced on Monday.
Solikin M. Juhro, head of the Macroprudential Policy Department and assistant to the governor of Bank Indonesia, said the central bank will reduce the secondary reserve requirement from 5 percent to 4 percent next month.
"The lowering of secondary reserve requirements will provide additional liquidity space that can be managed more flexibly by banks, totaling 78.45 trillion rupiahs," he stated during a press conference.
The official added that Bank Indonesia will also increase the cap on foreign funding for local banks from 30 percent to 35 percent of their capital, effective June 1.
These measures are part of a broader stimulus package aimed at supporting national economic growth. ■
