JAKARTA. Indonesia Deposit Insurance Corporation (lit. Lembaga Penjamin Simpanan/LPS) has increased the security interest rate for commercial and people’s credit banks by 25 bps, effective February 1 to May 30, 2023.

Purbaya Yudhi Sadewa, Head of the Board of Commissioner of LPS, confirmed that his party has raised the foreign exchange security interest for commercial banks by 25 bps to 2%. The rupiah security interest also rises 25 bps to 4%, as does savings security interest in people’s credit banks to 6.50%.

The increase of the security interest is a regular occurrence, taking place three times every year on January, May, and September.

Based on Sadewa’s explanation, LPS’s policy is made based on the possible surge of bank interest rate, thus giving the banks spaces to manage their own liquidity. “LPS is monitoring the national banks’ security interests for savings, both in rupiah and foreign currencies, which undergo a positive trend,” he mentioned on Thursday (26/1). (AM/ZH)