LPS ensures that functions are performed as a guarantee for bank customer funds

BigBussiness – Deposit Insurance Corporation (LPS) ensures that it performs its function as guarantor of customer funds in the bank. This is evident from the function, LPS, which is also actively involved in maintaining the stability of the banking system in accordance with its authority.

These two functions are in line with IDIC’s mission, which is realized in four ways, namely to implement effective deposit insurance to protect customers, implement effective and efficient banking solutions, implement crisis management through efficient and effective banking restructuring and take an active role in encouraging and maintaining the stability of the national economic system.

The banking industry itself is one of the important components of the national economy, which aims to balance progress and national economic unity. The stability of the banking industry affects the stability of the economy as a whole.

LPS, which performs a public fund guarantee, has a legal basis, namely Act number 24 on the deposit insurance company. Based on the law, LPS is said to be an independent institution whose purpose is to guarantee deposits from customers in banks and actively participate in maintaining the stability of the banking system in accordance with its authority.

This law has been in force since 22 September 2005, ie since LPS was officially in operation.
The guarantee that can be delivered to customers of LPS is up to 2 billion IDR for each customer bank.

This can be enforced with certain conditions, namely that it is recorded in the bank’s books, the interest rate does not exceed the interest of the LPS guarantors, and does not take measures that are harmful to the bank.

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