On Banks Being Encouraged to Finance Government Programmes, This is What the LPS Says

JAKARTA, KOMPAS.com - Financial regulators’ policies encouraging national banks to channel credit for government priority programmes have raised public concerns. Even on social media, several netizens have voiced intentions to withdraw their deposits from banks due to fears that the funds would be used by banks to finance government programmes. The Deposit Insurance Corporation (LPS) has urged the public not to worry about these policies, as LPS guarantees public deposits in banks. “Customer funds in banks remain safe and are guaranteed by LPS in accordance with applicable provisions,” emphasised Acting Executive Director of the Secretariat and Institutional Relations at LPS, K.M. Nuruddin, to Kompas.com on Tuesday (21/4/2026). On the other hand, banks are also required to implement good governance and prioritise prudent principles in managing customer funds and carrying out their intermediation functions. Moreover, he said, as long as the bank where the public places their funds is guaranteed by LPS, the public need not worry that their funds will disappear. “There is the LPS ready to guarantee customer funds in all banks operating in Indonesia,” Nuruddin stated. “Saving money in banks remains the safest solution. In addition to financial security, saving money in banks also has a significant impact on economic growth,” he added. For information, the government, including financial regulators such as the Financial Services Authority (OJK) and Bank Indonesia (BI), is encouraging banks to participate in financing government strategic programmes. Most recently, OJK is preparing a Draft OJK Regulation (RPOJK) related to adjustments to the Bank Business Plan (RBB). In the new regulation, OJK will design RBB provisions to further encourage banks to actively support government priority programmes such as the 3 million homes programme, Free Nutritious Meals (MBG), and the Red White Village Cooperative. In addition, OJK has decided to provide policy relaxations for the Financial Information Service System (SLIK) to support the acceleration of government priority programmes, particularly the 3 million homes programme. The SLIK relaxations include not displaying credit or financing information with values below Rp 1 million and accelerating the update of debtor loan repayment status in SLIK to a maximum of three working days after repayment. Both relaxations will be implemented starting from the end of June 2026. Meanwhile, Bank Indonesia (BI) is also supporting the realisation of the 3 million homes programme. The central bank’s support is provided through the provision of Macroprudential Liquidity Incentives (KLM) to banks that channel credit in priority sectors. Since 16 December 2025, BI has strengthened the KLM to provide higher incentives for banks that encourage the channelling of bank financing to certain sectors and banks that are more responsive in lowering new credit interest rates in line with the direction of lowering the policy rate (BI Rate). Sectorally, KLM has been channelled to priority sectors, covering the Agriculture, Industry, and Downstreaming sector; the Services sector including the Creative Economy; the Construction, Real Estate, and Housing sector; as well as the MSME, Cooperative, Inclusion, and Sustainability sector.