The adjustment in statutory reserves requirement will be considered for the first quarter of this year. This consideration is based on the belief that the 2006 macro economy will reach a relatively stable level and thus liquidity of the banking sector can be relaxed. Third, Bank Indonesia will work steadily to improve public access to sharia banking services.
For some of these, a return to regular payments is certainly possible, though to what degree will depend on the timing and strength of the recovery; active management of the positions on the part of the banks is indispensable if the share that become bad loans is to be reduced significantly.