LPS Maintains Guarantee Interest Rate at 3.5% Despite BI Rate Hike

The Deposit Insurance Agency (LPS) decided to maintain the guarantee interest rate (TBP) for commercial bank deposits at its May 2026 Commissioner Meeting. This comes despite the Bank of Indonesia (BI) raising its benchmark rate by 25 basis points to 5.25% at its May 2026 Governor Meeting. According to LPS’s press release, the TBP for rupiah deposits in commercial banks remains at 3.5%, while for rural banks (BPR) it is 6%. The TBP for foreign currency deposits in commercial banks is set at 2%. ‘The guarantee interest rates will take effect from 1 June 2026 to 30 September 2026,’ LPS stated in its official release on Friday, 29 May 2026. Additionally, LPS considered adequate banking liquidity and healthy interbank competition. The banking sector’s performance remains sufficient to maintain public confidence and strengthen banking stability. ‘Given these conditions, the current TBP is deemed sufficient to uphold public confidence and reinforce banking stability,’ LPS explained. This assessment was conducted to maintain the credibility and effectiveness of LPS’s deposit guarantee policy.