LPS Can Increase Guarantee Nominal From IDR 2 Billion, As Long As...

JAKARTA - The Deposit Insurance Corporation (LPS) guarantees customer deposits in banks with a maximum nominal value of IDR 2 billion. Can the amount of collateral be increased by more than IDR 2 billion?

Deputy Chairman of the LPS Board of Commissioners Lana Soelistianingsih said the amount of collateral of Rp. 2 billion is also very large when compared to other countries including Singapore.

When viewed from the gross domestic income ratio (GDP) per capita, the guarantee provided by LPS is 26.7 times from GDP per capita RI, which averages Rp. 60 million.

"Rp2 billion is large. When compared to other countries, how much is the nominal guarantee ratio for GDP per capita in Indonesia 26.7 times from GDP per capita we," Lana said at the Bloomberg Technoz Economic Outlook 2024 event, Wednesday 7 February.

Even if converted into US dollars, the guarantee is still much higher than neighboring countries such as Singapore, but this number is slightly below the US Federal Deposit Insurance Corporation (FDIC).

"So in nominal terms, Rp2 billion is very competitive," continued Lana.

Regarding the possibility of increasing the amount of guarantees, Lana said this could be done but there are still criteria that must be obeyed and have been stated in the Law regarding LPS policies in increasing the amount of guarantee coverage.

"So we can't just do that. The Ministry of Finance must be proposed to the DPR to get approval. But in our opinion, Rp2 billion is now very good," concluded Lana.