House of Representative proposed to Indonesian government to expanded the function of the Indonesian Deposit Insurance Corporation, local media reported today (06/24) - Photo: Special
JAKARTA (TheInsiderStories) – The Deposit Insurance Corporation (DIC) maintained guarantee interest rates for deposits in Rupiah at commercial banks by seven percent, following Bank Indonesia which held its benchmark interest rate for the fourth time at the 6 percent.
The spokesman Samsu Adi Nugroho said the guarantee interest rate still in line with the developments in the banking industry’s current interest rates.
“The trend of an increase in deposit rates has begun to slope and is thought to have reached the peak of the increase,” he stated in its written statement, on Tuesday (03/25).
From the results of the Board of Commissioners Member Meeting in March period, the guarantee interest rates for rupiah deposits in commercial banks were set at 7 percent, foreign exchange deposits in commercial banks amounted to 2.25 percent, and rupiah savings in Rural Banks of 9.5 percent.
However, the agency considers that there are still a number of external and internal factors that have the potential to trigger uncertainty for the movement of interest rates in the rest of the year.
“We will continue to carry out monitoring further on the factors that influence the guarantee interest rate policy,” said Nugroho.
In accordance with agency provisions, if the deposit interest rate agreed between the bank and the depositing customer exceeds the deposit guarantee interest rate, then the intended customer deposit is not guaranteed.
Therefore, the bank is asked to notify the depositing customer of the applicable deposit guarantee interest rate by placing the information in a place that is easily known to the customer.
“To protect customers and expand the coverage of guarantees, banks must also pay more attention to the provisions of the deposit guarantee interest rate in the context of raising funds,” he revealed.
It is noted, DIC sets the interest rate on Rupiah deposit insurance at 7 percent since January 2019. Regularly, the stipulation of guarantee interest rates will be valid until May 14, 2019.
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