JAKARTA, Sept 17 (Reuters) - Indonesia’s central bank will extend its policy of requiring lower reserve levels for banks that lend to small and medium or export-oriented businesses to the end of June 2021, from Dec. 31, 2020, previously, its governor said on Thursday.
Bank Indonesia (BI) currently allows banks in this category to park a portion of their deposits at 50 basis point below the reserve requirement ratio.
Governor Perry Warjiyo said the move was to complement BI’s decision to keep its key interest rate steady at 4%.
BI also extended its 0% merchant discount rate for digital transactions by micro businesses until the end of the year, from an initial deadline of end-September. (Reporting by Tabita Diela, Fransiska Nangoy and Gayatri Suroyo Editing by Ed Davies)
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