Video: LPS Explains Rationale Behind 25 Bps Increase in Deposit Insurance Rate

The Chairman of the Indonesia Deposit Insurance Corporation (LPS), Anggito Abimanyu, confirmed the resilience of the Indonesian financial sector amid the uncertainties of 2026 during the Economic Update 2026 event. Together with the Financial System Stability Committee (KSSK), LPS continues to promote mitigation efforts and navigate strategies to maintain the stability of the Indonesian financial system. In 2026, LPS handled seven Rural Banks (BPR) whose business licences were revoked due to integrity and management governance issues; however, the banking ecosystem remains stable with sufficiently strong capital, sound banking intermediation, and double-digit growth in third-party funds and credit.

Anggito also detailed the policy development regarding the 25 basis points increase in the Deposit Insurance Rate (TBP) for rupiah deposits in commercial banks to 3.75 per cent, while rupiah deposits in Rural Banks rose by 25 bps to 6.25 per cent, and foreign currency deposits in commercial banks remained at 2.00 per cent. This TBP policy responds to developments in the financial sector where market interest rates have risen, albeit limitedly, alongside robust banking performance and a slight decrease in deposit insurance coverage from 93 per cent to 92 per cent.

Regarding premium payment relaxation policies for banks affected by the Sumatra disaster, LPS is providing facilitation facilities to those submitted. Reviewing current banking developments, LPS is optimistic that the targets for deposit insurance premium income and the Banking Restructuring Programme (PRP) premiums are progressing as planned. As of April 2026, LPS recorded revenues of Rp 14.5 trillion, surpassing half of the 2026 target.