LPS Boss: Security Guarantee Coverage Level April 2023 Still Administrative

Chairman of the LPS Board of Commissioners Purbaya Yudhi Sadives. (Photo: Doc. Antara)

JAKARTA - The Deposit Insurance Corporation (LPS) ensures that the level of deposit guarantee coverage as of April 2023 remains adequate.

"The receipt of deposits by LPS is at an adequate level," said Chairman of the LPS Board of Commissioners Purbaya Yudhi Sadive, quoted from Antara, Friday, May 26.

The number of commercial bank accounts guaranteed by LPS as of April 2023 reached 99.94 percent of the total accounts or equivalent to 511,326,251 accounts.

Meanwhile, in nominal terms, the guaranteed amount of deposits reached 47.60 percent of the total savings or the equivalent of the front is IDR 3,834.78 trillion.

At the People's Economy Bank (BPR) or Sharia People's Economy Bank (BPRS), the number of accounts recorded was 99.98 percent or equivalent to 15,091,776 accounts.

In nominal terms, the amount of deposits reached 94.82 percent of the total savings or equivalent to Rp. 141.8 trillion.

Purbaya said the value of the banking deposit coverage was above the mandate of the LPS Law which stipulated that at least the value of the deposit coverage was 90 percent.

This value is also above the average of the member countries of the International Association of Deposit Insures (IADI) which is in the range of 80 percent.

On the other hand, Purbaya said that the performance of the banking industry is still maintained. This is reflected in the industrial capital ratio (KPMM) which was maintained at the level of 24.69 percent in the period March 2023.

Meanwhile, banking liquidity is also relatively maintained with an AL/DPK ratio of 26.58 percent in April 2023.

Then the performance of banking intermediation also continues to improve as seen in bank credit growth of 8.08 percent year on year (yoy).

Third party funds (DPK) also grew by 6.82 percent yoy.

Purbaya appealed to banks to continue to comply with the regulation and supervision of the Financial Services Authority (OJK) as well as the provisions for liquidity management by Bank Indonesia to protect customer funds and efforts to maintain the trust of deposit customers.