LPS Maintains Deposit Guarantee Interest Rate at 3.5%

The Indonesian Deposit Insurance Agency (LPS) has maintained the Deposit Guarantee Interest Rate (TBP) at 3.50% for rupiah deposits in commercial banks following a Commission Meeting on Thursday, 28 May 2026. It has also set the guarantee rate at 2.00% for foreign currency deposits in commercial banks and 6.00% for rupiah deposits in People’s Economic Banks (BPR). The rates will be effective from 1 June to 30 September 2026. “The decision was made considering the limited increase in market interest rates for rupiah and foreign currency deposits, banking intermediation performance, bank liquidity conditions, and healthy interbank competition,” according to an LPS official statement dated 30 May 2026. LPS reviews the deposit guarantee rate three times a year—in January, May, and September. This is the second consecutive time the TBP has been held steady after previously being at 3.75%. The deposit coverage ratio remains well above the statutory requirement of 90% of total bank accounts. LPS stated the current TBP remains adequate to maintain public trust and strengthen banking stability. The agency will continue periodic evaluations to ensure the policy aligns with economic, banking, and financial market developments, safeguarding the credibility and effectiveness of its guarantee measures. As of April 2026, 666.72 million commercial bank accounts were fully covered for deposits up to Rp 2 billion, while the number of BPR/BPRS accounts fully guaranteed for deposits up to Rp 2 billion.