The Indonesia Deposit Guarantee Scheme Isniable Better Than Singapore And Thailand

Loan Illustration (ANTARA)

JAKARTA - The Deposit Insurance Corporation (LPS) reports that the LPS deposit guarantee scheme is greater and more comprehensive than neighboring countries such as Singapore and Thailand.

Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Purbaya Yudhi Sadive said, more specifically, the value of deposits guaranteed by LPS is much higher both nominally and relatively to GDP per capita than the deposit guarantor authorities in Thailand and Singapore.

The savings value scheme guaranteed by the Thai deposit guarantor is 1 million Baht, while Singapore is 75 thousand Singapore dollars.

"According to the mandate of the law, LPS guarantees every bank customer deposit account in Indonesia of up to IDR 2 billion per customer per bank," he said in Jakarta, quoted on Saturday, January 28.

He added, until now, the coverage of banking deposits by LPS is maintained at a very adequate level. The amount of deposits guaranteed by LPS is IDR 2 billion per customer per bank is equivalent to 32.1 times GDP per national capita in 2021.

This ratio is far above the average upper-middle income countries which amounted to 6.3 times GDP per capita, and lower-middle income countries which amounted to 11.3 times GDP per capita.

He further explained, based on data from December 2022, the number of commercial bank customer accounts guaranteed by all savings (exchange of up to IDR 2 billion) is 99.93 percent of the total account or equivalent to 508.2 million accounts.

Meanwhile, in BPR/BPRS based on data in November 2022, the number of accounts guaranteed by all savings (exchange of up to Rp. 2 billion) is 99.98 percent of the total account or equivalent to 15.1 million accounts.

"The banking deposit coverage is worth above the mandate of the LPS Law, which at least has to cover 90 percent, and above the rule-of-thumb of the International Association of Deposit Insurers (IADI), which covers at least 80 percent," he concluded.