Banks Pay Premium For Banking Restructuring Program To LPS In 2025

Chief Executive of Banking Supervision of the Financial Services Authority (OJK) Dian Ediana Rae. (Photo: Doc. Antara)

The Financial Services Authority (OJK) said banks had started paying the premium for the Banking Restructuring Program (PRP) to the Deposit Insurance Corporation (LPS) in 2025.

"Banks have received adequate information and understanding and should be ready if the PRP premium is first implemented in 2025, including preparing funds for this PRP premium," said OJK Banking Supervision Chief Executive Dian Ediana Rae in Jakarta, quoted from Antara, Tuesday, September 17.

The implementation of the PRP premium aims to build a more resilient financial system and provide stronger resilience to the Indonesian banking industry in dealing with the worst threats and risks of financial system crisis conditions that could endanger the national economy.

The amount of PRP premium presentations set is based on the level of risk and the number of assets where banks that are getting bigger the number of assets and the level of risk will be subject to a higher premium providing encouragement for banks to always strive to maintain their risk level at an optimal level.

In addition, banks that have a risk level of 5 (unhealthy) the number of premiums set is zero percent without taking into account the total assets they have, so that banks that are requiring the handling of problems will not be burdened with PRP premium payments.

The preparation of regulations related to the PRP premium has started in 2016 by also involving the banking industry and banking associations.

One of the sources of PRP funding comes from the contribution of the banking industry through the use of its own bank resources in the form of PRP premium payment obligations.

If there is a deterioration in economic conditions that has an impact on the health condition of banks, banks can take advantage of these premium funds in the context of handling or solving bank problems so that they will increase the credibility and level of public trust in the banking industry.