Global Central Banks Raise Interest Rates, LPS Head Responds

The Chairman of the Board of Commissioners of the Indonesia Deposit Insurance Corporation (LPS), Anggito Abimanyu, has spoken out regarding the direction of the deposit guarantee rate (TBP), following recent interest rate hikes by various global central banks, including the United States Federal Reserve (The Fed).

Anggito stated that the LPS will maintain a ‘wait and see’ approach to market developments until October, following The Fed’s decision to raise interest rates by 25 basis points to a range of 3.75-4% during its September meeting.

“We will wait to see what happens in October. We will observe the situation,” he told reporters at the Ministry of Finance office on Monday (21/09/2026).

According to the LPS website, the current deposit guarantee rate for commercial banks is 3.75% for Rupiah-denominated deposits and 2% for foreign currency. Meanwhile, the guarantee rate for rural banks (BPR) stands at 6.25%.

The deposit guarantee rate serves as the maximum interest rate threshold required for customer deposits to be eligible for LPS protection.

The TBP acts as a benchmark to determine whether deposits meet the criteria for guarantee. It must be compared against the actual interest rate received by the depositor.

If the interest rate exceeds the LPS TBP, the deposits may fail to meet the requirements for guarantee. Therefore, depositors are advised to be cautious if the interest offered exceeds the applicable TBP.

In addition to The Fed’s decision to raise the Fed Funds Rate—the first such move since July 2023, effectively ending the rate-cutting cycle that took place throughout 2024 and 2025—other central banks have also begun raising their benchmark rates. Following the Fed’s decision, Hong Kong and several Gulf nations immediately took similar steps. At least 11 central banks have raised their benchmark interest rates since the beginning of the second semester of this year.