JAKARTA – Minimising the guarantee interest rate for conventional and rural banks is intended to support the economic recovery progress and allow banks to cut their costs of funds. Head of Boards of Commissioners of Indonesia Deposit Insurance Corporation (lit. Lembaga Penjamin Simpanan/LPS), Purbaya Yudhi Sadewa, explained in the press release, quoted Thursday (30/9).
“We hope that the policies designed by LPS, the government, and other financial sectors could support the economic recovery measures, especially with banks’ intermediation,” Sadewa added.
Earlier this week (27/9), the Meeting of Boards of Commissioner of LPS approved the 50-basis-points cut for the guarantee interest rate in public banks to 3.5% per year for rupiah and 0.25% per year for foreign currencies. Meanwhile, in rural banks, the guarantee interest rate is reset to 6% per year. These new interest rates are effective from today (30/9) until January 28, 2022.
According to Sadewa, this decision was finalised considering the declining market interest rate as the macroeconomy and financial system stability improved. Other factors are the banks’ liquidity levels that are quite stable and loose.
Lastly, Sadewa reminded the banks to inform their users regarding the guarantee interest rate decrease. “The users need to pay attention to their received yields so that it would not exceed the guarantee interest rate covered by LPS,” he asserted. (LK/ZH)