Indonesia Holds Deposit Insurance Interest Rate for Banks

LPS - JAKARTA. The Indonesian Deposit Insurance Corporation (IDIC) is holding the interest rate for rupiah deposits in commercial banks at a level of 4.25% and for People's Economy Banks (BPR)/ BPR Syariah at 6.75%.

The interest rate for deposits in foreign currency is also being held at 2.25%.

The Chairman of the IDIC Board of Commissioners, Purbaya Yudhi Sadewa, stated that the new deposit insurance interest rate will start to apply from February 1, 2024, until May 31, 2024. 

Purbaya said that this holding of the deposit insurance interest rate aims to maintain the momentum of economic recovery and banking intermediation, anticipate the risk of financial market uncertainty, and provide liquidity management and deposit interest rates.

"This deposit insurance interest rate is a reasonable rate, therefore customers need to pay attention to the applicable deposit interest rate, this is so that the deposits placed in the bank can be included in the deposit insurance program," he said in Jakarta, Tuesday (1/30).

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Banks are also urged to remain transparent in informing the deposit interest rate, and to continue to comply with the Financial Services Authority rules in their operations. 

Purbaya also mentioned, until December 2023 there were about 559.56 million customer accounts whose deposits were insured by the IDIC.