The LPS Guarantees 447.1 Million Customer Accounts

Illustration. (Photo: Doc. Antara)

JAKARTA - The Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Purbaya Yudhi Sadewa revealed that currently, the LPS guarantee coverage reaches 99.9 percent of the total number of depositing customer accounts or equivalent to 447.1 million accounts.

Meanwhile, Purbaya continued, if the LPS interest rate (TBP) criteria were added, the coverage would slightly decrease to 97.5 percent.

"There is a difference of 2.4 percent from the total customer accounts that are not covered by the guarantee because the interest rate is above the LPS guarantee rate," said Purbaya in his remarks at the LPS Gathering in Jakarta, Tuesday, April 12.

He added that until now, the amount of deposit guaranteed by the LPS is IDR 2 billion per customer per bank, equivalent to 32.2 times the national GDP per capita in 2021.

"This ratio is far above the average for upper-middle-income countries, which is 6.3 times GDP per capita, and lower-middle-income countries, which are 11.3 times GDP per capita," he continued.

Purbaya further explained, in carrying out its function as a deposit guarantee authority, IDIC plays a role in guaranteeing deposits from every bank carrying out its business activities in the territory of the Republic of Indonesia which includes Commercial Banks and Rural Banks, both conventional banks and banks based on sharia principles.

"Currently, the Participating Banks of the Guarantee Program consist of 107 Commercial Banks and 1.632 Rural Banks (BPR)," explained Purbaya.

Furthermore, he emphasized that LPS is committed to continuing to maintain the trust of depositors so that they feel safe, calm, and sure to save their money in the national banking system.