LPS maintains deposit insurance rates to bolster banking stability

Jakarta (ANTARA) – The Deposit Insurance Agency (LPS) decided via its Commissioner Meeting (RDK) to maintain the Deposit Insurance Rate (TBP) for deposits in commercial banks and rural credit banks (BPR) to preserve public confidence and strengthen banking stability. The TBP for rupiah and foreign currency deposits in commercial banks will remain at 3.50% and 2.00% respectively, while the rupiah TBP for BPR stays at 6.00%. The rates will be effective from 1 June 2026 to 30 September 2026. ‘LPS continues to regularly evaluate the TBP to ensure it aligns with future economic, banking, and financial market developments. This evaluation aims to maintain the credibility and effectiveness of LPS’s deposit insurance policy,’ the agency said in a statement on Friday. LPS stated the decision to hold TBP was partly due to limited increases in market deposit interest rates for rupiah and foreign currency. Banking intermediation performance, particularly in deposit gathering, remains robust, with adequate liquidity and healthy interbank competition. Additionally, LPS noted that deposit insurance coverage remains well above the legal mandate, exceeding 90% of total bank customer accounts. Based on LPS’s evaluation, the current TBP is deemed sufficient to maintain insurance coverage levels and depositor confidence. Data as of April 2026 showed that 666.72 million commercial bank accounts, covered up to Rp2 billion in deposits, accounted for 99.94% of total accounts. Meanwhile, 15.58 million BPR/BPRS accounts covered up to Rp2 billion represented 99.98% of total accounts. LPS stated it will continue to strengthen monitoring and assessment of insurance coverage levels to ensure alignment with market interest rate dynamics and TBP. LPS guarantees bank deposits provided they meet three criteria, abbreviated as ‘3T’: recorded in the bank’s books, interest rates not exceeding the TBP, and not linked to actions causing bank instability. The TBP sets the maximum deposit interest rate for deposits to qualify for LPS’s deposit insurance programme. LPS also urged the public to monitor bank deposit interest rates, and called on banks to actively and transparently communicate TBP information across all communication channels, including digital platforms, as part of transparency and depositor protection.