LPS Raises Deposit Guarantee Interest Rate to 3.75 Percent

The Indonesia Deposit Insurance Corporation (LPS) has decided to raise the deposit guarantee interest rate for rupiah deposits in commercial banks and rural banks (BPR) by 25 basis points. The decision was taken outside the regular schedule for setting the rate, which normally occurs in January, May, and September. Based on the results of a Board of Commissioners meeting on Thursday, 25 June 2026, LPS set the rupiah guarantee rate for commercial banks at 3.75 percent. Meanwhile, the rupiah guarantee rate for BPR was set at 6.25 percent. The guarantee rate for foreign currency deposits at commercial banks remains at 2.00 percent. LPS Chairman of the Board of Commissioners Anggito Abimanyu stated that the new guarantee rates will be effective from 1 July to 30 September 2026 and will be evaluated periodically. He said the adjustment is an anticipatory step to maintain the credibility of the guarantee rate as a reference for reasonable interest rates in the banking sector, while also increasing the effectiveness of the deposit guarantee programme policy. LPS considers that the current guarantee rate is still capable of maintaining the level of guarantee coverage and depositor confidence. As of May 2026, LPS recorded that the number of commercial bank customer accounts fully guaranteed up to Rp2 billion reached 681.67 million accounts, equivalent to 99.94 percent of total accounts. Meanwhile, the number of BPR/BPRS customer accounts fully guaranteed up to Rp2 billion reached 15.67 million accounts, or 99.97 percent of total accounts. At the previous Board of Commissioners meeting in May, LPS had decided to maintain the rupiah guarantee rate for commercial banks at 3.5 percent, the foreign currency guarantee rate at 2.00 percent, and the rupiah guarantee rate for BPR at 6.00 percent.