Being At Administrative Level, LPS Notes That It Has Given Guarantee To 530 Million Customer Accounts

Photo: Mara Trisnawati/VOI

The Deposit Insurance Corporation (LPS) reports that the coverage of deposit guarantees by LPS is at an adequate level above the mandate of the law and far above the international best practice average.

"According to the mandate of the law, LPS guarantees every bank customer deposit account (public bank and BPR/BPRRS) in Indonesia up to Rp2 billion per customer per bank," said Chairman of the Board of Commissioners of LPS Purbaya Yudhi Sadewa at a press conference on the Determination of TBP for the September 2023 period, in Jakarta, Friday, September 29.

Based on data as of August 2023, the number of accounts of commercial bank customers guaranteed by all savings (saving up to IDR 2 billion) is 99.94 percent of the total accounts or equivalent to 530.72 million accounts.

"Meanwhile, at BPR/BPRRS, the number of accounts guaranteed by all deposits (store up to Rp2 billion) is 99.98 percent of the total account or equivalent to 15.56 million accounts," continued Purbaya.

Just so you know, the scope of banking deposits is of value above the mandate of the LPS Law which is at least 90 percent, and in the RULE-of-thumb International Association of Deposit Insurers (IADI), which ranges from 80 percent.

Meanwhile, LPS also maintains TBP of Rupiah deposits at commercial banks and BPR of 4.25 percent each at commercial banks and 6.75 percent at the People's Economy Bank (BPR). And, for TBP foreign exchange deposits (foreign currency) at commercial banks of 2.25 percent.

"Furthermore, the TBP will apply for the period for the period 1 October 2023 to 31 January 2024," continued Purbaya.

He explained that this decision was taken to maintain the momentum of economic recovery and support the performance of banking intermediation, provide advanced space for banks in the management of liquidity and deposit interest rates; and maintain cross-authority policy synergies to create financial system stability.

Purbaya also appealed to banks to transparently convey to store customers about the current amount of Guarantee Interest Rate