Liquidation Of 8 BPRs, LPS Reports Having Paid Claims Of IDR 71 Billion

Illustration. (Photo: Doc. Antara)

JAKARTA - The Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS), Purbaya Yudhi Sadewa reports that throughout 2021, LPS has liquidated 8 Rural Banks or Sharia Rural Banks (BPR/BPRS). And, from 2005 to 2021, in total LPS has liquidated 116 BPR/BPRS, 1 Commercial Bank and saved 1 Commercial Bank.

As the deposit insurance and bank resolution authority in Indonesia, in terms of implementing the 2021 bank resolution, one of the duties and functions of the IDIC is to pay customer deposit insurance claims for deposit funds at banks that are forced to be liquidated.

In terms of the amount of deposit insurance claim payments, throughout 2021 IDIC has paid deposit insurance claims to 16,730 accounts with a total nominal amount of Rp71.46 billion.

"As for cumulatively, from 2005 to 2021, the nominal eligible deposits paid by LPS were IDR 1.7 trillion or 82.06 percent of the total deposits with liquidated banks," said Purbaya, Tuesday, April 26.

While for the total accounts, there were 265,884 accounts or 93.32 percent of the total accounts with liquidated banks. LPS guarantee coverage is very adequate, where 99.9 percent of savings accounts in national banks have been guaranteed by LPS, or equivalent to 399,866,365 accounts.

Throughout 2021, IDIC has also implemented several policies to support national economic recovery. In 2021, LPS has cut the Guaranteed Interest Rate (TBP) for Rupiah deposits by 1 percent and 0.75 percent for foreign currency deposits. In the January 2022 regular evaluation period, the TBP for Commercial Banks and Rural Banks was maintained at 3.50 percent and 6.00 percent, respectively, and 0.25 percent for Foreign Exchange.

"In addition, IDIC has also implemented a policy of relaxing premium fines and bank reporting during 2021," he continued.

This is to support the momentum of economic recovery as part of the synergy of financial system stability policies. This policy is expected to provide space for banks in managing their liquidity.

In the LPS Financial Report at the end of 2021, it recorded growth in total assets of Rp. 162.01 trillion or grew by 15.59 percent from the previous year. Then, the LPS Securities Investment portfolio as of December 31, 2021 reached IDR 152.39 trillion or grew 14.25 percent compared to 2020.

"Investment income recorded by LPS in 2021 reached Rp. 10.00 trillion, or an increase of 13.03 percent compared to the previous year. In this Financial Report, LPS posted a net surplus of Rp. 24.68 trillion, or an increase of 10.54 percent compared to the previous year, " he continued.

Purbaya revealed that LPS is also considered capable of fulfilling all of its long-term financial commitments as reflected in the AAA rating by Pefindo and Fitch Rating Indonesia for the period 2021-2022. This award is the umpteenth achievement for IDIC since it was held in 2015

Then, on April 7, 2021, IDIC received a certification for recognition of superior performance and a credible institution. IDIC has successfully obtained the certification of ISO 9001:2015 Quality Management System and ISO 37001:2016 Anti-Bribery Management System.

"The implementation of ISO is in line with the vision and objectives of the IDIC transformation program, namely obtaining certification for recognition of superior performance and credible institutions," he concluded.