LPS Maintains Guarantee Interest Rate at 3.50%

Jakarta, CNBC Indonesia - The Indonesia Deposit Insurance Corporation (LPS) has decided to maintain the Guarantee Interest Rate (TBP) at 3.50% for rupiah deposits in commercial banks, 6.00% for rupiah deposits in Rural Banks, and 2.00% for foreign currency deposits in commercial banks. The TBP will be effective from 1 June 2026 to 30 September 2026.

The decision was made considering the limited increase in market interest rates for rupiah and foreign currency deposits, strong bank intermediation performance in deposit gathering, adequate banking liquidity, and healthy interbank competition. Additionally, deposit coverage remains well above the legal mandate, exceeding 90% of total customer accounts.

Given these conditions, the current TBP is deemed sufficient to maintain public confidence and strengthen banking stability.

LPS will continue to regularly evaluate the TBP to ensure alignment with future economic, banking, and financial market developments. This evaluation aims to preserve the credibility and effectiveness of LPS’s deposit insurance policy.

The decision to hold the TBP comes despite Bank Indonesia (BI) officially raising the benchmark BI Rate to 5.25% at its 19-20 May 2026 governor’s meeting. The 50 basis point hike follows BI’s prior hold of the benchmark rate at 4.75% since November 2026.

It is worth noting that the TBP serves as a benchmark for banks to set deposit interest rates, as rates exceeding the TBP will not be covered by LPS.