LPS Reports Special Rate Deposit Portion Rose to 33.82% in May 2026
The Indonesia Deposit Insurance Corporation (LPS) has revealed that the portion of deposits receiving interest rates above the guaranteed rate, known as special rates, climbed to 33.82% in May 2026. This figure represents an increase from the 32.92% recorded in April.
Doddy Zulverdi, LPS Board of Commissioners Member for the Deposit Guarantee Programme and Bank Resolution, stated that the increase in special rate deposits occurred across the entire banking industry. “This happened in all banks. So, no bank did not experience an increase in its special rate,” Doddy said during a press conference in Jakarta on Thursday (25/6).
Doddy explained that the rise in the portion of deposits with interest rates above the guarantee rate was not solely driven by policy rate developments. Financial market conditions and intensifying competition among banks in raising funds also influenced the setting of deposit rates.
According to Doddy, banks consider several indicators when adjusting the rates offered to customers. These factors include movements in the yield of Government Securities (SBN), interbank money market rates, and the weakening of the exchange rate. “All of these will be factors considered by banks in setting and adjusting the interest rates they offer to customers,” he said.
Bank Indonesia raised the BI-Rate by 50 basis points (bps) in May 2026, marking the first adjustment since September 2025. In June 2026, the BI-Rate was raised twice more, totalling 50 bps, resulting in a cumulative increase of 100 bps within a month.
Amid the rising trend in deposit rates offered by banks, the LPS maintained the guarantee rate in May 2026. This caused the portion of deposits exceeding the guarantee rate to increase. “The implication is that because we maintained the guarantee rate while market rates were already trending upwards, automatically the portion above the guarantee rate, or what we call the special rate, increased,” Doddy said.
In June 2026, the LPS raised the guarantee rate for rupiah deposits at commercial banks and rural banks (BPR) by 25 bps each. With this adjustment, the guarantee rate for rupiah deposits at commercial banks became 3.75%, while the rate for BPRs became 6.25%. The guarantee rate for foreign currency deposits at commercial banks was kept at 2.0%.
These new guarantee rates are effective from 1 July 2026 to 30 September 2026. The LPS stated that the adjustment was an anticipatory measure to maintain the credibility of the guarantee rate as a benchmark for reasonable interest rates in the banking sector. The policy is also aimed at enhancing the effectiveness of the deposit guarantee programme amid changes in market interest rate trends.
In setting the guarantee rate, the LPS considers developments in deposit rates, the growth prospects of rupiah and foreign currency deposits, banking liquidity conditions, and the dynamics of interbank rate competition. The LPS also factors in the persistently high global economic uncertainty, including projected global economic slowdown, relatively high financial market volatility, and expectations that global interest rates will remain higher for longer.