33% of Indonesian Banks Still Offer Special Rates, LPS Head Reveals the Reasons
Jakarta, CNBC Indonesia - The Deposit Insurance Corporation (LPS) assesses that the need to maintain liquidity is causing a third of the banking industry to still provide special rates above the guarantee interest rate (TBP).
LPS Commissioner Council Chairman Anggito Abimanyu explained that banks are offering high interest rates similar to an auction mechanism. This means banks needing funds will “bid” with higher interest to attract customers to deposit their money there.
Additionally, he mentioned the tight competition in gathering funds within the banking industry.
“Because the market currently demands sufficiently high deposits. Moreover, the competition for funds is quite intense,” Anggito stated when met at BSI Tower on Tuesday (14/4/2026).
He said he does not know exactly why many banks are setting high savings interest rates. However, Anggito noted that this phenomenon must be addressed.
The former Deputy Minister of Finance then highlighted that the issue of loan demand is more important.
“But in my view, perhaps what’s important is not above the TBP. But the demand, the request for funds, must be strong. The economy must grow, so that the demand for funds is sufficiently strong. The supply now has no issues; liquidity is adequate,” Anggito remarked.
Previously, LPS revealed that many banks are still not complying with setting deposit interest rates below the LPS TBP. This is reflected in the average bank deposit interest rate, which has instead continued to rise and exceed the TBP year after year.
In his presentation, Anggito showed that the LPS TBP has fallen 75 basis points (bps) for rupiah deposits in general banks since June 2025. Nevertheless, the proportion of customer deposits receiving interest rates above the TBP reached 25% in December 2022, increasing to 30% in December 2024 and further to 33% in December 2025.
“That’s quite high, meaning banks have not yet complied with the guarantee interest rate we have set,” Anggito emphasised during a working meeting with Commission XI of the House of Representatives (DPR RI) on Thursday (9/4/2026).
He stated that this is one of the reasons why bank lending rates have not yet decreased. Because the 33% portion of deposits is considered above the TBP or what he calls receiving a “special rate.”
According to Anggito, the TBP has always been above market interest rates in the past. However, the aggressive setting of the LPS TBP throughout 2025 placed it below market interest rates.
“Whereas the rule of thumb is that the market interest rate should protect the interest rates prevailing in the market,” Anggito said.
This is what underpins LPS’s decision to hold the TBP steady for the regular January period. The TBP is maintained at 3.5% for rupiah deposits in general banks, 2% for foreign currency deposits, and 6% for deposits in Sharia Rural Banks (BPRS). This TBP applies from 1 February 2026 to 30 May 2026.
For information, the TBP serves as the benchmark for banks in setting deposit interest rates, as rates higher than the TBP will not be guaranteed by LPS.