JAKARTA. The Government Regulation in Lieu of Law (Perppu) issued by the government recently provides an opportunity for the Indonesian Deposit Insurance Corporation (LPS) to increase the value of guaranteed deposits.
Chairman of the Board of Commissioners of LPS Halim Alamsyah said that although banking liquidity is improving and the growth of third party funds (DPK) has increased, LPS will continue to be cautious and keep monitor the movement of DPK.
"With the Perppu, LPS proposes to increase the value of guaranteed deposits, if needed. At present, the maximum guaranteed value is Rp 2 billion. If needed, it can be raised higher," Halim said in a press conference of the Financial System Stability Committee (KSSK) conducted online on Wednesday (1/4).
The government issued the Perppu to provide protection to customers amid the coronavirus (COVID-19) pandemic.
In addition, LPS also has the option to increase the types of guaranteed public deposits. For example, guaranteeing individual funds managed by an institution such as pension funds, labor funds, and others.
On the other hand, Perppu also allows LPS to obtain loans from the government and issue debt securities if needed, to strengthen its ability to handle banking problems caused by the coronavirus pandemic (COVID-19). (AM/AR)