LPS Explains Reasons For DPK At The End Of 2023 Growing Slow

Deputy Chairman of the Board of Commissioners of the Deposit Insurance Corporation, Lana Soelistianingsih. (Photo: Doc. LPS)

JAKARTA - Deputy Chairman of the Board of Commissioners of the Deposit Insurance Corporation, Lana Soelistianingsih, revealed that Third Party Funds (DPK) grew slowly at the end of 2023. In December 2023, DPK was recorded at IDR 8,457 trillion or grew by 3.73 percent year on year (yoy).

Lana said, many people assume that this slowdown is due to the phenomenon of taburing or eating savings by customers. However, Lana ensures that this is not entirely true but only because of the conversion of assets or changes in customer interest from previously saving into other asset instruments.

"We also try to be careful because someone asked, is it true that we are good? It seems that there is only a conversion from assets," Lana said at the Bloomberg Technoz Economic Outlook 2024.

In addition, Lana also mentioned that there is internal financing, namely that many customers then use their own funds to finance their business rather than taking loans from banks.

Based on LPS data, the DPK grew a total of 3.73 percent and a sharp decline occurred in the giro. Although it still shows a growth of 4.48, there is a significant decline. He reasoned that this decline was caused by many companies using the giro as capital expenditure (capex).

"There is a phenomenon of a higher for longer that makes business actors re-calculate whether they need to borrow from the bank or not? When we studied it, there was a switching from gyro to other assets," Lana continued.

For information, Bank Indonesia noted that Banking Third Party Funds (DPK) grew in December 2023 by around 3.8 percent on an annual basis (yoy) or Rp. 8,234 trillion. Meanwhile, in November 2023, it was Rp. 8,031 trillion. This means that DPK growth has stagnated.

Assistant Governor for Communications at BI Erwin Haryono said the development of the DPK was influenced by the growth of the Corporate DPK of 5.0 percent (yoy) and individuals 3.2 percent (yoy).

"In December 2023, Giro grew 3.9 percent (yoy), after the previous month grew 3.4 percent (yoy). Meanwhile, Savings was 2.0 percent (yoy), compared to the previous month's growth of 2.6 percent (yoy)," he explained.