Indonesian banks compete for deposits amid high interest rates

Digital banks in Indonesia are offering deposit interest rates as high as 9% per year to attract funds amid liquidity challenges and market volatility. However, these high rates exceed the guarantee rate set by the Indonesia Deposit Insurance Corporation (LPS), which is 3.75% per year for rupiah deposits for the period of October 1, 2026, to January 31, 2027. Deposits exceeding this rate do not meet the requirements for LPS insurance.

In contrast, state-owned banks including Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI), and Bank Mandiri have maintained their existing rupiah deposit interest rates. For example, BRI offers 3.00% per year for tenors of 1, 3, and 6 months, while longer tenors of 12, 24, and 36 months receive 2.50% per year. Factors such as inflation, liquidity conditions, and Bank Indonesia's interest rate policies continue to influence these offerings.