LPS Holds Interest Rate Guarantee at Level 3.50 Percent

JAKARTA - At the Meeting of the Board of Commissioners (RDK) of the Deposit Insurance Agency (LPS) on Monday, January 19, 2026, LPS decided to maintain the Guarantee Interest Rate (TBP) for deposits in rupiah at commercial banks and People's Economic Banks (BPR), as well as the TBP for deposits in foreign currencies at commercial banks.

Member of the Board of Commissioners for the Program of Insurance Guarantee, Ferdinan D. Purba detailed, the Rupiah deposit in Public Banks remains at 3.50 percent and the Rupiah deposit in BPR at 6.00 percent. Meanwhile, for the foreign exchange deposit in public banks is 2.00 percent. The TBP will be valid from February 1 to May 31, 2026.

"The decision to determine the LPS TBP is made credibly by considering various aspects, including the market interest rate (SBP) for deposits, which has a relatively decreasing trend, the amount of deposits in the banking sector which has grown positively with adequate banking liquidity conditions, the coverage rate of deposit guarantees which is far above the mandate of the Law, as well as considerations of the prospects and momentum of economic growth and global and national macroeconomic risks. We hope that banks will always pay attention to the TBP in order to collect deposits from customers," he said in a press conference in Jakarta, Thursday, January 22.

Ferdinan also conveyed several data on the development of the national banking industry, including the functions of banking intermediation which remained maintained followed by strong capital and liquidity conditions, as well as controlled credit risk levels.

As of December 2025, bank credit grew by 9.63 percent year-on-year supported by high investment credit distribution. Meanwhile, third-party funds (DPK) grew by 13.83 percent year-on-year, contributed mainly by increased government and corporate spending activities.

Furthermore, the capital adequacy of the banking industry is at a high level as an effort by banks to mitigate potential credit risks and market risks. The capital adequacy ratio (KPMM) of the banking industry is maintained at 26.05 percent as of November 2025.

Meanwhile, the liquidity condition of the banking industry is still adequate. As of December 2025, the AL/DPK ratio was at the level of 28.57 percent, far above the threshold of 10 percent.

The LPS guarantee program with a maximum guaranteed deposit value of IDR 2 billion per customer per bank covers 99.94 percent of the total general bank accounts and 99.97 percent, the coverage of this guarantee program is far above the mandate of the Law of 90 percent.

Furthermore, Ferdinan appealed for banks to be transparent and open to communicate to depositors about the amount of the Guarantee Interest Rate currently in effect. Among others, by placing the information in a place that is easy for customers to find or through information media and bank communication channels to customers.

"And in order to strengthen the protection of customer funds and efforts to maintain the trust of depositors, LPS also urges banks to always inform the LPS TBP to their customers. TBP is part of the 3 conditions for LPS guarantee which is known as 3T, namely 3T, namely customer deposits recorded in the bank's books, customers do not receive interest on deposits that exceed the interest rate set by LPS, and customers are not indicated and/or proven to have committed illegal acts that harm the bank," he concluded.