LPS Disburses IDR 735.26 Billion to Save Bankrupt Banks Throughout 2024

JAKARTA - The Deposit Insurance Corporation (LPS) reported that it has disbursed at least IDR 735.26 billion to save bankrupt banks throughout 2024.

LPS Research Group Director, Seto Wardono detailed that from 2024 to October 31, 2024, LPS has handled deposits for 15 banks whose business licenses have been revoked.

"In detail, the total deposits that have been paid by LPS are IDR 735.26 billion from a total of 108,116 accounts," he said at the Medi Workshop in Bandung, quoted on Monday, December 2.

He added that since LPS began operating in 2005 to October 31, 2024, LPS has handled deposits for 137 banks whose business licenses have been revoked.

LPS has also paid a total of IDR 2.82 trillion in savings, with details of savings in commercial banks amounting to IDR 202 billion and BPR/BPRS amounting to IDR 2.62 trillion, from a total of 413,397 accounts.

"Hopefully, with this understanding of macroeconomic concepts, media practitioners can provide information and enlightenment to the public about the government's economic policies comprehensively and accurately. In addition, it can also convey messages that are indeed the focus of institutions or regulators in Indonesia, including from LPS," continued Seto.

One of the interesting things and the theme of the sharing session included economic growth and inflation, where just like economic growth, inflation is also seasonal.

In certain months, for example in January, December or during the month of Ramadan, inflation is usually high.

"We can understand this cyclical behavior because in other months, for example when there is a big rice harvest, deflation can occur," he explained.

Quoting the data release issued by the Central Statistics Agency (BPS), Indonesia recorded inflation of 0.16 percent MoM in October 2024, after five months of deflation.

However, Indonesia's inflation was recorded to have fallen to 1.7 percent YoY in October 2024.