LPS Coordinates with Banks to Align Deposit Rates with Guarantee Rate

Jakarta (ANTARA) - Anggito Abimanyu, Chair of the Board of Commissioners of the Indonesian Deposit Insurance Corporation (LPS), said the corporation continues to coordinate with banking industry players so that deposit interest rates can be aligned with the Deposit Insurance Rate (TBP).

Speaking after a limited meeting at the Presidential Palace complex in Jakarta on Monday evening, Anggito said that currently around 30 per cent of deposit interest rates in the market are above the TBP.

“What is happening is that market interest rates are generally, on average, above the TBP — around 30 per cent. But we continue to coordinate so that over time they are brought down further, so that market interest rates can, as far as possible, be insured by the LPS,” said Anggito.

He stated that the LPS currently sets the TBP at 3.75 per cent for rupiah deposits at commercial banks, taking into account interest rate developments in the market.

On that occasion, Anggito also confirmed that public savings continue to grow, denying claims that many people are experiencing the phenomenon of eating into their savings or using deposits for daily needs.

“Everything is still growing, yes — whether savings below Rp100 million or up to above Rp5 billion. They are all growing and moving,” said Anggito.

This growth indicates that the circulation of funds entering banks supports real-sector economic activity.