CIMB Niaga to Leverage BI's Liquidity Incentive while Maintaining Prudent Lending Practices

Positive Response to BI's Macroprudential Liquidity Incentive

CIMB Niaga has welcomed Bank Indonesia's introduction of the Macroprudential Liquidity Incentive (KLM) scheme, effective from December 1, 2025. The bank's CEO, Lani Darmawan, stated that while they appreciate the liquidity support, the bank's credit expansion will be contingent upon market demand, which currently remains weak due to low consumer purchasing power.

Maintaining Credit Growth Guidance

Despite the additional liquidity provided by BI through the KLM, CIMB Niaga is maintaining its credit growth guidance for the year at 5-6%, in line with its Business Plan. This decision reflects the bank's cautious approach, balancing growth with risk management. Lani emphasized that the bank will continue to be prudent in ensuring asset quality remains intact.

Risk Mitigation Remains a Priority

CIMB Niaga is committed to maintaining a careful approach to lending, with a focus on risk mitigation. The bank will continue to apply stringent selection criteria for sectors and segments to be financed under the KLM. This cautious stance is driven by the current economic conditions and the need to maintain financial stability.

Impact of BI's Monetary Policy

The KLM scheme is part of BI's efforts to stimulate credit growth and accelerate the transmission of monetary policy easing. As of September 2025, credit growth stood at 7.7% year-on-year, a level that BI considered insufficient, prompting the need for additional measures. BI's Director of Macroprudential Policy Department, Irman Robinson, explained that the KLM includes a lending channel designed to provide banks with greater liquidity to meet their credit growth targets.

Market Implications

While the KLM provides additional liquidity for banks to expand credit, CIMB Niaga is adopting a wait-and-see approach, monitoring the recovery of demand from businesses and consumers. The bank's prudent stance reflects a broader cautiousness within the banking sector regarding credit expansion in the current economic environment.