Indonesia raises deposit guarantee rates to bolster banking stability

The Deposit Insurance Corporation (LPS) decided to raise the Deposit Guarantee Rate (TBP) to 3.75% for rupiah deposits in commercial banks and to 6.25% for deposits in Bank Perekonomian Rakyat, effective 1 July – 30 September 2026. The rate for foreign‑currency deposits remains at 2%. The adjustment follows a series of Bank Indonesia (BI) rate hikes that added 100 basis points since May 2026, aiming to preserve public confidence and system stability.

LPS noted that total bank deposits continued to grow, up 13.4% year‑on‑year in May 2026, and that the share of “special‑rate” deposits—those paying interest above the TBP—reached 33.8% in May, up from 32.9% in April. The agency said the move is an anticipatory step to keep the TBP a credible benchmark and to enhance the effectiveness of the guarantee program.

In the broader banking sector, Bank Indonesia raised its policy rate to 5.75% in mid‑June 2026. Allo Bank Indonesia cited the higher BI‑Rate and the new TBP in outlining its strategy to expand partner‑based financing while managing credit risk. Meanwhile, state bank BNI launched a digital dashboard to help exporters monitor foreign‑exchange earnings under the new government regulation on natural‑resource export proceeds.