JAKARTA - The Indonesian Deposit Insurance Corp (IDIC) has slashed bank deposit insurance interest rate by 25 basis points (bps) from July 30 to September 30, 2020. This policy is part of the government's effort to boost the MSME sector during the coronavirus (COVID-19) pandemic.
In a press release published on Monday (3/8), Chair of the IDIC Board of Commissioners Halim Alamsyah said the policy refers to the latest development in the deposit insurance rate system, banking liquidity, and the performance of several economic indicators. Until the next few months, the deposit insurance rate guaranteed by IDIC will grow to 5.25%, foreign exchange to 1.50%, and rural banks to 7.75%.
"The adjustment of the deposit insurance interes rate aims to maintain customers' confidence in the banking system," Mr Alamsyah said.
Banks, he added, are asked to inform the customers of the current deposit interest rate. If customers receive deposit insurance interest rates above the current rate, their deposits will not be guaranteed by IDIC. (LK/MS)