Rachmat Gobel Calls The Presence Of LPS Strengthening Public Peace On Financial Services

JAKARTA - Deputy Speaker of the Indonesian House of Representatives for Industrial and Development Coordination (Korinbang) Rachmat Gobel said the presence of the Deposit Insurance Corporation (LPS) strengthens public peace of mind with financial and banking services in Indonesia.

In addition, he said the presence of the institution is also part of the practice of good governance (good governance) and modern in state administration.

"LPS guarantees and strengthens public calm and public trust in the national financial and banking system," said Rachmat Gobel in a written statement, quoted from Antara, Monday, January 2.

However, he admits that there are still problems in online loans (pinjol) or online loans, fraudulent investments, foreign exchange (forex) trade fraud, and others that disturb public peace in financial services and investment.

Therefore, Rachmat Gobel asked LPS to be more progressive in providing protection and public interest. "So if you want to borrow or invest, look at it already guaranteed by LPS or not. If there is, it will be safe," he said at the socialization of LPS roles and functions in Gorontalo recently.

Gobel is optimistic about the Indonesian economy, which continues to grow above five percent amid global challenges.

"We remain optimistic, even though we are overshadowed by the increase in inflation and the worsening global economic conditions due to the Russian-Ukraine war," he said.

There are three things that must be considered, according to him, namely encouraging MSMEs, maintaining the use of the Domestic Component Level (TKDN), and overseeing exports. However, Gobel emphasized that the best solution in building and prospering the community is through the development of human resources.

On the same occasion, the Secretary of the LPS Institution Dimas Yuliharto said the history of the presence of LPS was the 1998 crisis. At that time, he continued, there were a number of banks that were closed and banks experiencing bad credit. To ensure customer deposits, the government became its guarantor and took over it.

Based on that experience, he said, LPS was formed so that every time there is a problem with public funds in banking and insurance, there are already alert systems and institutions. This was proven to be effective when there was a crisis in 2008 or 2014. LPS was present thanks to Law Number 24 of 2004 and was officially established in 2005.

Dimas said that currently there are 1,716 banks, namely 106 commercial banks and 1,610 BPR. Meanwhile, the number of banks that were closed was 118 banks, namely 1 commercial bank and 117 BPR.