The National Economy Still Needs Boost, This Is What LPS Says

Purbaya Yudhi Sadewa, Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS). (LPS Doc)

JAKARTA - Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Purbaya Yudhi Sadewa assesses that the current national economy, which is starting to recover from the impact of the COVID-19 pandemic, still needs encouragement so that it can grow even faster.

"The steps include maintaining the LPS guarantee interest rate at a level that still provides space for deposit interest rates to be at a low level, so that loan interest rates can continue the current downward trend. Of course, this is done while taking into account developments. financial system stability and banking liquidity," said Purbaya in a statement in Jakarta, Saturday.

During the pandemic, IDIC has lowered the Guarantee Interest Rate (TBP) to the lowest level in history.

The reduction in TBP is expected to help banks reduce the cost of funds, which in turn will contribute to lower lending rates. "Loan interest rates for consumption have fallen to 10.6 percent, for working capital around 8.85 percent and for investment to 8.5 percent. According to our monitoring, the graph continues to fall from month to month," said Purbaya.

This is also in line with the central bank's policy with strong coordination of all members of the Financial System Stability Committee (KSSK) to create current financial conditions that can support economic growth. "We will continue to maintain this, so that the downward trend in interest rates can still continue. The key is that there is sufficient money supply in the financial system," said Purbaya.

In supporting the national economic recovery, IDIC has also extended the relaxation period for late payment of guarantee premiums to banks participating in the LPS guarantee until 2022.

This policy is carried out to provide an opportunity for banks to be able to manage their liquidity optimally. "The relaxation of fines for late premium payments to LPS insurance participating banks will be extended until the end of 2022 to support the national economic recovery. As a result, banks can use their funds first for cashflow management," said Purbaya as reported by Antara.

In addition, in 2021 IDIC has made several breakthroughs, namely the development of a Single Customer View (SCV) system that will accelerate the payment of guarantee claims, as well as the development of an Integrated Core System (ICS) which will optimize the digitization of work processes at IDIC.