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Jakarta Post

Economy in brief: LPS raises deposit insurance rate

  • The Jakarta Post

Jakarta   /   Fri, September 14 2018   /  03:02 am

The Deposit Insurance Corporation (LPS) on Wednesday announced the increase of its deposit insurance rates for both rupiah and foreign exchange-denomination savings as banks have started to raise their deposit rates in response to Bank Indonesia’s (BI) recent interest rate hike.The deposit insurance rate for savings in rupiah increased 25 basis points (bps) to 6.5 percent, while the deposit rate for foreign-denominated savings increased 50 bps to 2 percent.Meanwhile, the deposit insurance rate for rupiah-denominated savings in microcredit banks (BPR) was also increased by 25 bps to 9 percent. The new rates will be in effect starting from Thursday until Jan. 12, 2019.Among the factors behind the LPS’ decision was the upward trend of banks’ deposit rates as a response from BI’s recent seven-day reserve repot rate ( 7DRRR ) hike, LPS Commissionaire Council chairman Halim Alamsyah sa...