LPS Records Assets Up 12.25 Percent As Of October 2023

BANDUNG - The Deposit Insurance Corporation (LPS) recorded a high income of Rp210 trillion until October 31, 2023 or grew 12.25 percent from the previous year of Rp187.09 trillion.

Executive Director of Claims and Resolution of Bank LPS Suwandi said, this amount grew significantly from the initial capital which was recorded at IDR 4 trillion.

The amount of LPS capital is stated in Article 81 of Law no. 24 of 2004 which states that LPS's initial capital is state assets that are separated and set at least IDR 4 trillion to IDR 8 trillion. This separation was carried out as a commitment of the government in supporting a healthy and stable banking industry.

"Our total money is now IDR 210 trillion from the initial capital of IDR 4 trillion with assets of IDR 195 trillion," he told the media in Media Gathering in Bandung, Thursday, November 9.

The amount of these assets, he said, would be handed over to the state as Non-Tax State Revenue (PNBP) as long as the assets were equivalent to 2.5 percent of the total savings or Third Party Funds (DPK) of the entire banking industry.

"If our guarantee reserves meet the target level of 2.5 percent of the total savings of our entire banking industry. It continues to increase in savings," continued Suwandi.

Suwandi menjadi, jika DPK perbankan mencapai Rp10 Triliun, LPS baru bisa menyerahkan aset tersebut sebagai PNBP kepada negara.

However, currently banking deposits have not reached 2.5 percent. "It's not enough to give PNBP. It's still below, still below 2 percent," concluded Suwandi.

Quoted from the LPS official website, LPS's source of revenue came from the government's initial capital of IDR 4 trillion, the participation contribution paid when the bank first became a participant, the guarantee premium paid by banks every semester was 0.1 percent of third party funds, as well as the proceeds from guarantee reserve investments.