Video: Premium Relaxation, LPS Support for Banks Affected by Sumatra Floods

Chairman of the Board of Commissioners of the Indonesia Deposit Insurance Corporation (LPS), Anggito Abimanyu, confirmed the resilience of the Indonesian financial sector amidst uncertainty in 2026. LPS, together with the Financial System Stability Committee (KSSK), continues to encourage mitigation efforts and navigate 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, but the banking ecosystem remains stable with strong capital, good banking intermediation, and double-digit growth in Third-Party Funds (DPK) and credit.

Anggito also conveyed the development of the policy to increase the Guarantee Interest Rate (TBP) by 25 basis points for Rupiah deposits in commercial banks to 3.75%, with Rupiah deposits in Rural Banks (BPR) rising by 25 bps to 6.25%, while the rate for foreign currency deposits in commercial banks remains at 2.00%. This TBP policy is a response to developments in the financial sector, where market interest rates have risen, albeit limitedly, while banking performance remains strong and the coverage level of the guarantee has slightly decreased from 93% to 92%.

Regarding the premium relaxation policy for banks affected by the Sumatra disaster, LPS is providing convenience facilities to those submitted. Looking at current banking developments, LPS is optimistic that the target for guarantee premium income and the Banking Restructuring Programme (PRP) premium will be achieved as planned. LPS noted that as of April 2026, its revenue reached Rp 14.5 trillion, more than half of the 2026 target.