Jakarta, Indonesia Sentinel — The Indonesia Deposit Insurance Corporation (Lembaga Penjamin Simpanan, or LPS) has paid out IDR 735.26 billion (approximately $47 million) in claims to depositors of collapsed banks between January and October 2024. This amount covers a total of 108,116 accounts from 15 banks whose operational licenses were revoked this year.
Since its establishment in 2005, LPS has handled deposit insurance claims for 137 banks that ceased operations. Over this period, the agency has disbursed IDR 2.82 trillion ($181 million) to safeguard the deposits of 413,397 account holders. This includes IDR 202 billion ($13 million) for commercial banks and IDR 2.62 trillion ($168 million) for rural banks (BPR/BPRS).
The data was revealed during a national media workshop held in Bandung, West Java, on November 30, 2024. The event aimed to enhance media practitioners’ economic literacy, emphasizing their role in disseminating accurate financial information to the public.
Strengthening Media’s Understanding of Economic Policy
The workshop, led by LPS, focused on fundamental economic concepts, including national income, inflation, balance of payments, monetary and fiscal policy, and the use of financial and banking data. These topics are crucial for media professionals reporting on economic policies.
Seto Wardono, Director of LPS Research Group, stressed the importance of equipping journalists with a solid understanding of macroeconomic principles.
“With better comprehension of macroeconomics, media practitioners can offer comprehensive and accurate insights into government economic policies, enabling the public to make informed decisions,” Seto said during the event held at Gaia Hotel, Bandung.
Inflation Trends in Indonesia
One of the workshop’s key topics was Indonesia’s economic growth and inflation trends. Seto highlighted the seasonal nature of inflation, which tends to spike during specific periods, such as Ramadan or year-end holidays. Conversely, periods like rice harvest season often bring deflation.
“By understanding these cyclical patterns, we can better predict and respond to economic fluctuations,” he explained.
According to Indonesia’s Central Statistics Agency (BPS), the country recorded a month-on-month inflation rate of 0.16% in October 2024, following five consecutive months of deflation. On a year-on-year basis, inflation eased to 1.7% in October, reflecting Indonesia’s ability to maintain relatively stable price levels amidst global economic uncertainties.
LPS: A Pillar of Economic Stability
LPS plays a critical role in maintaining financial stability in Indonesia. By insuring bank deposits, the agency provides a safety net for depositors and fosters trust in the banking system. Its proactive approach to handling collapsed banks ensures that customers’ savings are protected, bolstering confidence in Indonesia’s financial institutions.
The workshop also underscored the broader implications of LPS’s work, linking its activities to the nation’s overall economic resilience. As Indonesia continues to navigate global economic challenges, institutions like Indonesia Deposit Insurance corporation remain pivotal in safeguarding the financial ecosystem and supporting sustainable economic growth.
(Becky)
