Socializing New Mandates, LPS Ready To Guarantee Customer Policy

JAKARTA - The Deposit Insurance Corporation (LPS) conducts socialization related to its new duties and responsibilities to guarantee public funds to insurance companies. The new mandate is contained in Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK).

Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Purbaya Yudhi Sadive said that LPS welcomed several changes to the arrangement, including the new mandate given.

"LPS will be fully committed to preparing itself as well as possible to carry out the new mandate given to us," said Purbaya, Tuesday, June 20.

According to him, the P2SK Law strengthens the institutional aspects of the financial supervision authority. In addition, the P2SK Law also strengthens the direction of coordination between the authorities involved in the financial sector, namely the Ministry of Finance, Bank Indonesia, the Financial Services Authority (OJK) and LPS who are members of the Financial System Stability Committee (KSSK).

LPS Chief Executive Lana Soelistianingsih said there was strengthening and increasing LPS authority, namely checking banks and insurance companies, Placement of funds at Banks in Restructuring (BDP), Implementation of Policy Guarantee Programs (PPP) and Exception of certain LPS authorities from the PT Law, Banking Law and Capital Market Law.

Lana assessed that the existence of this law would clearly have a lot of influence and adjustment to the vision and mission as well as strengthening human resources.

"Including regulations, infrastructure and IT systems as part of transformation during the transition period and hopefully continuing to dynamic in the next five years," he said.

The LPS function based on the P2SK Law is to guarantee savings, guarantee policies, actively maintain financial system stability, carry out bank resolutions as well as liquidation of insurance companies.

"We must continue to instill awareness in customers and the wider community," added Lana.