LPS: RI Banking Conditions Mid-2025 Experience Significant Developments Compared To 2024

JAKARTA - Chairman of the Board of Commissioners of the Purbaya Deposit Insurance Corporation (LPS) Yudhi Sadewa assessed that banking conditions in Indonesia towards mid-2025 experienced significant developments rather than during the 2024 period.

"We were worried until December 2024 because suddenly there was a deterioration in liquidity. However, entering January to April 2025 there have been significant improvements," said Purbaya after attending a public lecture at the Universitas Brawijaya Auditorion in Malang City, East Java, quoted by Antara, Friday, May 23.

In fact, he said, at the end of 2024 to prepare cash worth Rp. 15 trillion in preparation for providing intervention to banking companies experiencing funding problems.

"But now it is stable, I reduce the money. Maybe now it is around Rp. 1 trillion-Rp. 2 trillion to meet operational needs, liquidation of small banks and people's economic banks (BPR) if there is (bangkrut), that is more than enough," he said.

According to him, one of the factors that caused improvement in banking conditions this year was because all policies from the government had been implemented, after experiencing a transitional leadership period.

He said the government was able to formulate various policies and programs that had an impact on accelerating economic turnover.

"It has been overcome by the government, now money is flowing into the system so that the economy is stretched. Of course, it improves liquidity and banking conditions," he said.

In addition, he said, the progress of banking development in Indonesia which is moving positively can also be seen from the lack of BPRs experiencing financing problems.

From LPS records, until May 2025, there has only been one BPR that has experienced problems in terms of financing.

"Every year something falls, in normal conditions usually 6-7 BPR. But until May 2025 there is only one BPR, it is small. So the conditions are not bad," he said.

Nevertheless, Purbaya stated that his party was still preparing mitigation patterns to deal with all potential dynamics.

"We always balance between assets and investments, because there should be no bank falling but we don't have cash and it will be difficult," he said.