Dimas Yuliarto, Director of LPS Policy Formulation Group Urges Public to Save Money at Banks

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DIMAS Yuliarto (Director of LPS Policy Formulation Group) speaks about the role and function of LPS on financial system stability in Indonesia on Friday, May 10, 2019 in KRT Hall Fadjar Notonegoro.
DIMAS Yuliarto (Director of LPS Policy Formulation Group) speaks about the role and function of LPS on financial system stability in Indonesia on Friday, May 10, 2019 in KRT Hall Fadjar Notonegoro. (Photo: Ransis Putra Gaut).

UNAIR NEWS – Faculty of Economics and Business (FEB) Universitas Airlangga (UNAIR) in collaboration with the LPS (Deposit Insurance Corporation) held a public lecture on Friday, May 10, 2019, in KRT Hall Fadjar Notonegoro FEB UNAIR. The speakers were Dimas Yuliarto (Director of LPS Policy Formulation Group) and Sulistya Rusgianto, S.E., M.I.F., Ph.D. (FEB UNAIR lecturer).

The main topic of the discussion was “The Role and Function of the Deposit Insurance Corporation in Maintaining Financial System Stability in Indonesia”. Dimas explained that LPS was officially established in Indonesia on September 22, 2005. An institution like LPS was first established in the United States, under the name of Federal Deposit Insurance Corporation (FDIC). It brought a positive impact on banking in America as fewer banks went bankrupt.

The monetary crisis that hit Indonesia in 1998 mandated the establishment of LPS through Law Number 10 of 1998. Then on September 22, 2004, the Indonesian President ratified the Republic of Indonesia Law Number 24 concerning LPS. The task and function of LPS are to build public trust in Commercial Banks and People’s Credit Banks by giving guarantee to customer deposits.

“In the past, when the monetary crisis took place in 1998, public confidence in Indonesia banks has fallen considerably. I was also in the long line to take my deposit at the bank. My saving was 150 thousand rupiah at that time, “Dimas said.

The other speaker, Dr. Sulistya expressed his concern on the tight liquidity of Indonesian banks that bring a negative impact on the economy. They include the disrupted financing business which potentially slows down economic growth/development and reduces public confidence in the banks.

Before closing the event, Dimas urged the participants to save their money at the bank. “Now you don’t need to be afraid to save money in a bank. LPS guarantees your savings at the bank remain safe, “he said. (*)

This post is also available in: Indonesian

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