The Indonesian Deposit Insurance Agency has raised its deposit guarantee interest rates by 25 basis points for both rupiah and dollar-denominated deposits. With these rate hikes, rupiah deposit guarantee rates in general banks have been raised to 4.25 percent.
Meanwhile, for foreign exchange currency deposits, the rates have been raised to 2.5 percent. All in all, raising the LPS deposit rates will ensure higher returns, especially for exporters who park their money in Indonesian banks.
Usually, the LPS only hikes rates three times in one year namely in January, May, and September. But due to factors such as the fed's rate hikes, the LPS have decided to increase their rates to ensure that investors and exporters are more willing to keep their foreign currencies in Indonesia.