JAKARTA - Bank Indonesia and the Financial Services Authority (OJK) will work together to provide loans to banks that are experiencing short-term liquidity difficulties. The agreement for the cooperation was signed by Perry Warjiyo, Governor of BI and Wimboh Santoso, Chairman of the Board of Commissioners of OJK, yesterday (19/10).

In a press release published on Tuesday (20/10), Perry Warjiyo said that the short-term liquidity loans (PLJP) were crucial in maintaining financial system stability. "The facility is for banks that are experiencing liquidity difficulties but are still solvent (still able to pay debts, ed)," he said.

According to him, BI and OJK will coordinate to provide the facility, while maintaining the principle of prudence. The scope of synergy between the two institutions includes pre-application, assessment, information on application approval, supervision of recipient banks, and collateral settlement and execution.

Wimboh Santoso said the joint decision was to clarify the mechanisms and accountabilities of each institution. "The coordination between BI and OJK is to create a banking system that is healthy, efficient and optimal for the national economy," he said. (LK/AR)