LPS Chief Predicts IDR 1.18 Trillion in Deposit Guarantee Funds Needed This Year

Jakarta, CNBC Indonesia - The Indonesia Deposit Insurance Corporation (LPS) has realised operational spending of approximately IDR 830 billion to date, out of a total annual operational budget of IDR 2 trillion.

LPS Chairman Anggito Abimanyu explained that the institution’s budget allocation is broadly divided into two main groups: operational costs and policy budget. “For budget allocation, there are two: realisation for operational costs. Our operational costs are IDR 2 trillion, ladies and gentlemen, IDR 2 trillion per year. Currently, we have used around IDR 830 billion,” he stated during a working meeting with Commission XI of the Indonesian House of Representatives (DPR RI) in Jakarta on Wednesday (24/6/2026).

The 41.5% operational budget realisation supports various activities and functions of the institution in carrying out its mandate of deposit insurance and maintaining the stability of the national financial system.

In addition to operational costs, Anggito explained that LPS also allocates a policy budget, which serves as a reserve or buffer fund to anticipate the needs for handling troubled banks, particularly Rural Banks (BPR). This budget is used for activities ranging from surveillance, handling processes, to the resolution of banks experiencing problems.

“This policy budget is like a buffer, a buffer for precaution in case there is a resolution, and indeed for BPR, we allocate this policy budget for the purpose of, starting from, surveillance,” he said.

Anggito explained that from the policy budget already realised, around IDR 400 billion has been used for the BPR resolution process, including premium payments and deposit insurance claims to customers of banks handled by LPS. These funds are part of LPS’s efforts to ensure that customer rights remain protected when a bank’s business licence is revoked and it enters the liquidation or resolution stage.

Furthermore, LPS estimates that the total funds required for deposit insurance claim payments by the end of the year could reach approximately IDR 1.18 trillion. “Of course, this figure fluctuates depending on the number of BPRs that we will resolve from the OJK later,” he concluded.