# Indonesia LPS insurance and deposit guarantee programs

> Live situation record from CLSTR: https://clstr.news/situations/indonesia-lps-insurance-and-deposit-guarantee-programs
> Updated: 2026-10-03T06:19:43.000Z. Sources: 6. Developments: 3.

The Indonesia Deposit Insurance Corporation (LPS) is expanding its scope of protection through new proposals and maintaining high coverage levels in the banking sector.

In September 2026, the LPS proposed a cumulative maximum guarantee of Rp500 million per insured person under a new Policy Guarantee Program (PPP). Commissioner Ferdinan D. Purba stated this limit aims to cover between 97% and 99% of all insurance policies. Lawmakers noted that such guarantees are essential for restoring public trust in the insurance industry.

Concurrently, LPS reports that deposit guarantee coverage for Indonesian banks remains consistently above 90%. As of July 2026, approximately 99.94% of commercial bank accounts and 99.97% of rural bank (BPR/BPRS) accounts are covered for deposits up to Rp2 billion. Since 2005, the LPS has managed 159 bank liquidations.

In October 2026, the LPS announced it will maintain its Deposit Insurance Rate (TBP) from October 1, 2026, through January 31, 2027. Chairman Anggito Abimanyu stated the decision aims to “maintain public confidence in the banking system and support financial stability,” citing stable industry liquidity and positive intermediation performance. Under this period, rates remain at 3.75% for rupiah deposits in commercial banks, 6.25% for rupiah deposits in Rural Banks (BPR), and 2% for foreign currency deposits in commercial banks.

Regarding claim disbursements, the LPS reported paying Rp243.02 billion to protect 31,437 accounts following the failure of four BPR/BPRS institutions in West Java between 2025 and August 2026. Nationally, the LPS has handled 11 bank closures through August 2026, paying out Rp595.61 billion in claims.

## Timeline

### 2026-10-03: LPS maintains deposit insurance rates through January 2027

Indonesia's LPS will maintain deposit insurance rates through January 2027 and has disbursed Rp 243 billion to cover customers of failed rural banks in West Java.

2 sources. https://clstr.news/cluster/lps-maintains-deposit-insurance-rates-through-january-2027

### 2026-09-26: LPS reports high deposit guarantee coverage across Indonesian banks

LPS reports deposit guarantee coverage exceeds 90% for Indonesian banks, with Bank Sumut covering nearly 1.99 million accounts as of August 2026.

2 sources. https://clstr.news/cluster/lps-reports-high-deposit-guarantee-coverage-across-indonesian-banks

### 2026-09-10: LPS proposes Rp500 million limit for insurance policy guarantee program

LPS has proposed a Rp500 million cumulative guarantee limit for the Policy Guarantee Program, aiming to cover up to 99% of policyholders and restore public trust in the insurance industry.

2 sources. https://clstr.news/cluster/lps-proposes-rp500-million-limit-for-insurance-policy-guarantee-program

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Cite as: Indonesia LPS insurance and deposit guarantee programs. CLSTR, https://clstr.news/situations/indonesia-lps-insurance-and-deposit-guarantee-programs