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IDIC cuts rupiah deposit interest rates by 25bps for commercial, rural banks
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Indonesia Deposit Insurance Corporation (IDIC) chairman Halim Alamsyah (Photos courtesy of JP/Arief Suhardiman)
T
he Indonesia Deposit Insurance Corporation (IDIC) has cut its guaranteed interest rate by 25 basis points (bps) on rupiah deposits made by commercial banks and rural banks.
The guaranteed interest rate for the rupiah deposits of commercial and rural banks was reduced respectively to 6 percent and 8.5 percent, while the rate for foreign currency deposits was maintained at 0.75 percent.
Both rates will be effective from Sept. 15, 2017 to Jan. 15, 2018.
IDIC chairman Halim Alamsyah said the reduction in the guaranteed interest rate was upon considerations that the market interest rates of the 62 banks it monitored had shown a declining trend since early 2017.
“In August, Bank Indonesia also lowered its seven-day reverse repo rate to 4.5 percent, which was also among our considerations for reducing the guaranteed interest rate,” he said on Thursday in Jakarta.
He added that, based on the IDIC's evaluation, the liquidity of the banking industry in the next three months would remain secure and resilient.
Read also: Indonesia's LPS completed 10 bank resolutions last yearThe IDIC does not guarantee banks’ savings accounts and time deposits if their interest rates are above the guaranteed rate. It thus urges banks to clearly disseminate the information on the new rates to their customers.
