Pandemic Ends, LPS Revokes Guarantee Fine Relaxation

JAKARTA - The Deposit Insurance Corporation (LPS) has decided to revoke the relaxation of fines for late payment of insurance premiums starting in period I next year. Chairman of the Board of Commissioners of the Savings Guarantee Institution (LPS) Purbaya Yudhi Sadewa said that this revocation was carried out because the COVID-19 pandemic period had ended.

"This is based on the end of the COVID-19 pandemic status in accordance with Presidential Decree Number 17 of 2023 concerning Determination of the End of the COVID-19 Pandemic Status in Indonesia, and the relatively well-maintained performance and recent developments of national banking," he explained.

So, he said, the payment of guarantee premiums for period II 2023 (i.e. the period July 1 – December 31, 2023) is the last relaxation period.

The end of the relaxation period was announced on August 29, 2023, and was communicated to all banks participating in the guarantee, including through publication on the LPS website.

"We urge the banks participating in the guarantee, especially those that take advantage of the relaxation, to prepare the necessary steps to ensure that premium payments can be made within the time limit in accordance with the LPS Regulations regarding the Deposit Guarantee Program, this is to avoid the imposition of fines for delays and/ or lack of premium payments," explained Purbaya.

Previously, to support national economic recovery during the pandemic, LPS extended the relaxation period for fines for late payment of guarantee premiums to banks participating in LPS guarantees until 2022.

This policy was implemented to provide banks with the opportunity to manage their liquidity optimally.