LPS Targets Reduction of Unbanked Indonesians to 13 Million

The Indonesia Deposit Insurance Corporation (LPS) has highlighted the persistently high number of residents without access to banking services (unbanked) in Indonesia. LPS Board of Commissioners Chairman Anggito Abimanyu stated that the number of people without access to bank financial services is targeted to fall to 13 million this year. Based on LPS data, the unbanked population has steadily declined over the past three years, from 59.8 million in 2023 to 53.2 million in 2024, and further down to 49.7 million in 2025. The largest decrease occurred in the productive age group of 15-69 years, shrinking from 23.5 million in 2023 to 18.2 million in 2024, then to 15.3 million in 2025. “Every year we have a target to reduce the unbanked, residents who do not have an account. Currently, there are 15 million of productive age. Our annual target is to reduce the unbanked by 2 million. So this year, by the end of the year, it should drop to 13 million without accounts,” he said during a working meeting with House of Representatives Commission XI in Jakarta on Wednesday (24/6/2026). This target aligns with the directive of President Prabowo Subianto, who has requested that all Indonesians gain access to bank financial services within three years. Anggito explained that one effort to reduce the unbanked population involved organising a Financial Festival in Yogyakarta, held in collaboration with other financial institutions sharing the same goal. Data presented by LPS showed that the financial sector in the Special Region of Yogyakarta (DIY) in 2025 exhibited several dynamics. The proportion of savers with balances below Rp100 million decreased by 2%, while the number of savers with balances above Rp5 billion increased by 3%. In terms of intermediation, credit growth remained relatively low at 6.14%, with a loan-to-deposit ratio (LDR) of 65%, indicating high banking liquidity. DIY also recorded a banking fund surplus of Rp31.4 trillion, yet approximately 20% of existing accounts remained dormant. Additionally, around 16% of the productive age population aged 15-70 in the region still lacked access to banking services. The festival attracted over 11,000 visitors, predominantly high school and university students, which was deemed consistent with LPS’s goal of targeting the productive age group. Commission XI Deputy Chairman Mukhamad Misbakhun expressed appreciation for the 2026 Financial Festival, noting that Yogyakarta is a highly inclusive city suitable for conducting financial education for the public. Nationally, LPS recorded that the highest percentage of unbanked residents by region was in Kalimantan at 24.67% of the total population, followed by Sulawesi, Maluku, and Papua (Sulampua) at 22.83%. Java recorded an unbanked percentage of 19.21%, Sumatra 18.27%, and Bali-Nusa Tenggara (Balinusra) had the lowest rate at 13.27%. Conversely, the number of dormant accounts nationwide has continued to rise, from 144.09 million in 2023 to 158.77 million in 2024, and further to 173.42 million in 2025. Year-on-year growth of dormant accounts reached 9.52% in 2023, increased to 10.18% in 2024, before slowing to 9.23% in 2025. LPS defines a dormant account as a non-digital commercial bank savings account with a maximum balance of Rp50,000 and no value changes throughout the year.