Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fathan Qorib, Andin Aditya Rahman
After careful consideration, the Indonesia Deposit Insurance Corporation (LPS) has finally decided to increase its rupiah deposit interest rate by 50 base points (bsp). With this new rate, the interest rate for commercial banks’ will increase to as high as 6.25 percent, while the rate for rural banks will reach 8.75 percent. These new rates will apply starting 26 July 2013 until 14 September 2013.
According to Mirza Adityaswara, Executive Director of LPS, the reason why LPS is raising its rupiah deposit interest rate is simply to counterbalance the recent increase in the Bank Indonesia (BI) rate of 50 bsp to 6.50 percent, and the increase of the deposit facility (Fasbi) rate which was hiked to 4.75 percent.
“If the BI rate increases, the interest on deposits will also increase, including LPS’s rate. But if the BI rate was to decrease, consequently the LPS rate will also go down. Essentially we’re just following BI, if interest on deposits was to increase and LPS did nothing, the funds of bank customers would not be guaranteed,” said Miraz in Jakarta on Thursday (25 July).
Despite the increase in the LPS rupiah deposit rate, foreign currency deposit rates at LPS remain unchanged at 1.25 percent.
Mirza explained that there were no reasons to increase rates for foreign currency deposits as domestic banks still hold plenty of foreign currency.
“Banks still provide an adequate quantity of foreign currencies,” stated Mirza.
The decision to increase the deposit rate has drawncriticismfrom academia. Telisa Aulia Falianty, a lecturer at the Faculty of Economics at the Universitas Indonesia, notes that the LPS decision on interest rates will also spark a hike in credit interest rates. Such conditions will slow down investment activity, especially for those who are dependent on its development. In turn, these circumstances will undermine Indonesia’s economic growth.
(ds/kc)
Fathan Qorib, Andin Aditya Rahman
After careful consideration, the Indonesia Deposit Insurance Corporation (LPS) has finally decided to increase its rupiah deposit interest rate by 50 base points (bsp). With this new rate, the interest rate for commercial banks’ will increase to as high as 6.25 percent, while the rate for rural banks will reach 8.75 percent. These new rates will apply starting 26 July 2013 until 14 September 2013.
According to Mirza Adityaswara, Executive Director of LPS, the reason why LPS is raising its rupiah deposit interest rate is simply to counterbalance the recent increase in the Bank Indonesia (BI) rate of 50 bsp to 6.50 percent, and the increase of the deposit facility (Fasbi) rate which was hiked to 4.75 percent.
“If the BI rate increases, the interest on deposits will also increase, including LPS’s rate. But if the BI rate was to decrease, consequently the LPS rate will also go down. Essentially we’re just following BI, if interest on deposits was to increase and LPS did nothing, the funds of bank customers would not be guaranteed,” said Miraz in Jakarta on Thursday (25 July).
Despite the increase in the LPS rupiah deposit rate, foreign currency deposit rates at LPS remain unchanged at 1.25 percent.
Mirza explained that there were no reasons to increase rates for foreign currency deposits as domestic banks still hold plenty of foreign currency.
“Banks still provide an adequate quantity of foreign currencies,” stated Mirza.
The decision to increase the deposit rate has drawncriticismfrom academia. Telisa Aulia Falianty, a lecturer at the Faculty of Economics at the Universitas Indonesia, notes that the LPS decision on interest rates will also spark a hike in credit interest rates. Such conditions will slow down investment activity, especially for those who are dependent on its development. In turn, these circumstances will undermine Indonesia’s economic growth.
(ds/kc)