There Are Still 51 Percent Of Indonesian People Save Money Under

Chairman of the Board of Commissioners of the Purbaya Deposit Insurance Institute Yudhi Sadewa. (Photo: Doc. ANTARA)

JAKARTA - Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Purbaya Yudhi Sadewa said that as many as 51 percent of people chose to store their money under pillows rather than in the bank.

He indicated that the public might not know that savings or savings reached Rp. 2 billion per account and per bank were guaranteed by LPS.

If we look at the level of public access to banking or financial services, it's 76.19 percent, but the literacy rate is still at the level of 38.03 percent. So we have to educate the public to be confident and believe in storing their funds in the bank. So this kind of event is very positive to explain and educate the public that their deposits at the bank are safe," he said in an official statement, Tuesday, September 27.

He said that some people said they were worried that the bank where they put their money would close or revoke their business license.

"If for example there is a bank falling due to various reasons, our services will be faster, now for example the average refund or payment of customer funds takes about 50 days, but now with a new system we will shorten up to 7 days according to international standards, efforts are not easy but we will continue to do our best," he explained.

Purbaya added that one of the banking institutions guaranteed by LPS is the People's Credit Bank (BPR).

Ha is LPS's commitment to support banks located in small cities or remote areas. At least 1,600 BPRs are guaranteed and supervised by LPS.

According to him, the BPR provides access to financial services to people in remote areas to continue to move the wheels of the economy.

"We plan to support digital infrastructure for BPRs that connect all over Indonesia, we are studying this, because one of the characteristics of our banking is the BPR-BPR, that is the most important thing and we must take care of it in the future, because they are the ones who provide access to the community, especially people in remote areas," he said.

Nationally, the coverage of general bank accounts guaranteed to be full by LPS as of August 2022 is 99.93 percent of the total accounts and accounts of BPR/BPRS as of June 2022, which is fully guaranteed by LPS of 99.97 percent.

Meanwhile, handling the guarantee claim, from 2005 to August 2022, LPS has disbursed customer deposit claims worth Rp1.413 trillion from Rp1.460 trillion which was declared feasible (equivalent to 96 percent).

The funds are customer deposit funds that save 117 banks that have been revoked for their business licenses.