LPS: Inactive Accounts Not an Issue, As Long As Not Misused

REPUBLIKA.CO.ID, JAKARTA – The Deposit Insurance Corporation (LPS) records the continued presence of inactive accounts in the banking sector. Nevertheless, this condition is not considered a primary issue as long as it is not exploited for illicit purposes.

LPS Commissioner Council Chairman Anggito Abimanyu stated that the number of inactive accounts currently stands at around 50,000. This figure has actually declined compared to the previous year.

“Inactive accounts have increased, but they have decreased by about 9 percent,” Anggito said when met after the Halal Bihalal of the Sharia Economy and Finance Forum Group (FG) PP-ISEI 2026 at BSI Tower, Jakarta, on Tuesday (14/4/2026).

According to him, the focus should not be on the number of inactive accounts, but rather on their potential misuse. “The important thing is not the number, but how to ensure that these accounts are not misused,” he said.

Anggito added that ideally, accounts should remain active for transaction activities. However, inactive accounts can still exist if their use is limited.

On the other hand, LPS views banking liquidity as still sufficiently loose. Public funds deposited in banks remain relatively large, but have not been fully channelled into loans. “The money is still piling up, still in the banks in the form of deposits,” Anggito said.

He explained that this condition is related to weak financing demand. “Deposit growth is above 10 percent, while credit is below 10 percent. This shows that credit expansion has not returned to normal,” he said.

LPS data also indicates that until the end of 2025, third-party funds grew by 13.83 percent annually, higher than credit growth of 9.63 percent.

Looking ahead, LPS assesses that strengthening economic activity is key to enabling the funds in the banking sector to be more optimally channelled into productive areas.