By: Rivka Mayangsari*)
Strengthening the micro, small, and medium enterprise (MSME) sector continues to be a strategic agenda in national economic development. Amid global economic dynamics and domestic challenges, the presence of a stable, trustworthy, and inclusive financial system is a key prerequisite for MSMEs to grow sustainably. In this context, the role of the Indonesia Deposit Insurance Corporation (Lembaga Penjamin Simpanan/LPS) is increasingly relevant as a guardian of public trust and a pillar supporting the people’s business ecosystem.
LPS has reaffirmed its commitment to supporting the strengthening of the people’s economy and the development of MSMEs through a healthy, stable banking system based on prudential principles, including sharia principles. This commitment aligns with the needs of MSMEs, which require certainty, a sense of security, and access to reliable financial services. Without trust in the banking system, MSME actors will face difficulties in managing finances, saving funds, and developing their businesses sustainably.
LPS Secretary Jimmy Ardianto emphasized that MSMEs play a strategic role in the national economy, including within the Muhammadiyah economic ecosystem and the broader people’s economy. MSMEs are not only providers of employment, but also drivers of local economic activity that directly contribute to equitable welfare distribution. Therefore, building MSMEs’ trust in the banking system is a key factor in encouraging business strengthening, sound financial governance, and long-term business sustainability.
As a state institution, LPS provides deposit insurance of up to IDR 2 billion per depositor per bank. This guarantee covers deposits owned by MSME actors, whether placed in conventional banks or Islamic banks. All banks operating in Indonesia—including commercial banks, Rural Banks (BPR), and Sharia Rural Financing Banks (BPRS)—are required to participate in the LPS deposit insurance scheme. This system provides a sense of security for business actors to store their business funds in banks without fear of losing their deposits.
Jimmy explained that the presence of LPS also serves to prevent bank runs, namely massive withdrawals of funds due to depositor panic. Banking stability is crucial for MSMEs, as disruptions in the financial sector can directly affect business financing, distribution flows, and the resilience of the people’s economy. With a strong deposit insurance system, public trust is maintained, allowing economic activities to continue running normally even amid uncertainty.
Globally, the concept of deposit insurance has proven effective in maintaining financial system stability and public trust in banks. In Indonesia, the role of LPS is increasingly strategic as it is part of the Financial System Stability Committee (KSSK), alongside the Ministry of Finance, Bank Indonesia, and the Financial Services Authority (OJK). This synergy enables the state to prevent and address potential economic crises at an early stage, while ensuring that the financial system remains robust in supporting national economic growth.
In addition to guaranteeing deposits, LPS also actively maintains a balance between depositor protection and the health of the banking industry. One important instrument in this regard is the determination of the Deposit Insurance Interest Rate (Tingkat Bunga Penjaminan/TBP). LPS has decided to maintain the TBP for rupiah deposits in commercial banks and BPRs, as well as the TBP for foreign currency deposits in commercial banks. This policy provides certainty for depositors while ensuring healthy interest rate competition.
Acting Member of the LPS Board of Commissioners for the Insurance Program, Ferdinan D. Purba, explained that decisions on setting the TBP are made in a credible manner and based on comprehensive considerations. These include relatively declining market interest rate trends, positive growth in banking deposits, adequate liquidity conditions, and deposit insurance coverage levels that are well above the statutory mandate. In addition, prospects for economic growth and global and national macroeconomic risks are also key considerations.
Ferdinan emphasized the importance of banking transparency in conveying information related to the TBP to depositors. Banks are encouraged to be open and proactive in informing customers about the applicable TBP through various communication channels, including branch offices, information media, and digital platforms. This step is essential so that depositors, including MSME actors, understand their rights and the protection they have over their deposits.
In order to strengthen depositor fund protection and maintain depositor confidence, LPS also encourages banks to consistently educate the public about the role of deposit insurance. This education is an important part of national financial literacy, ensuring that MSME actors are not only users of banking services, but also informed and empowered partners.
With stronger deposit protection, well-maintained banking stability, and policies that favor public trust, MSMEs have a stronger foundation to move up to the next level. LPS, together with all stakeholders in the financial sector, continues to ensure that Indonesia’s banking system becomes a safe home for the people’s business funds, while also serving as a driving force for inclusive and equitable economic growth.
In conclusion, the strengthening of deposit protection by LPS is tangible evidence of the state’s presence in safeguarding trust and the sustainability of the people’s businesses. When MSME actors feel secure in saving and managing their funds within the banking system, opportunities for business expansion, innovation, and job creation become increasingly open.
