LPS mandates core banking integration for 1,400 Rural Banks

The Indonesia Deposit Insurance Corporation (LPS) is implementing new mandates to strengthen the national banking system. LPS Chairman Anggito Abimanyu revealed that approximately 1,400 Rural Banks (BPR) currently lack integrated core banking systems. To address this, LPS aims to integrate these systems to enable earlier detection of transaction changes, which will facilitate faster and more prudent bank resolution processes.

Under Law Number 4 of 2026, LPS has received new authorities, including the power to place funds when banks face liquidity difficulties. This shifts the institution's focus from solely addressing solvency to also managing liquidity issues.

Additionally, LPS is prioritizing financial literacy efforts through the Lampung Financial Festival 2026. This initiative targets the Lampung region, where deposit insurance literacy (58.8%) remains below the national average (62.5%). The program specifically aims to educate students and university students to bridge the gap between general awareness of deposit guarantees and specific knowledge of the LPS institution.