ID :
24245
Mon, 10/13/2008 - 19:43
Auther :
Shortlink :
https://www.oananews.org//node/24245
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GOVT PROVIDES GUARANTEE FOR DEPOSITS OF UP TO RP2 BILLION
Jakarta, Oct 13 (ANTARA) - The government has raised the upper limit of the amount of guranteed bank deposits from Rp100 million to Rp2 billion per account, Finance Minister Sri Mulyani told the press here on Monday.
She said the increase in the amount of deposits covered by the government's security guarantee was regulated through a government regulation in lieu of law (Perpu) on the Amendment of Law No. 25 / 2004 on Savings Guarantor Institution (LPS).
The minister said that through the Perpu on the Saving Guarantor Institution (LPS) the government increased the criteria that could be used to change the value or amount of deposits that could receive security guarantee from the LPS.
"Based on the law on LPS, there are three criteria which allow the government to change the provisions on security guarantee. In the Perpu, the criteria are added," Sri Mulyani said.
She said that the three previous criteria were on the occasion of bank rush, on the occasion of hyper-inflation and when the number of guaranteed customers was less than 90 percent.
The minister said that at the present condition (with upper limit of deposits receiving guarantee at Rp100 million), about 95 percent of customers had received a guarantee, but with the global financial crisis threat, the government considered the need to add one more criterion.
The additional criterion is 'on the situation of financial crisis threat which endangers national financial system.'
In implementing the Perpu, the government has issued a government implementing regulation (PP) which set the upper limit of deposits at Rp2 billion under the security guarantee of the LPS.
Previously, the LPS provides a guarantee for a deposit account of up to Rp100 million. With the PP, the upper limit of deposits to be guaranteed was raised to Rp2 billion for each account.
"The Perpu and PP are effective October 13, 2008," the minister said.
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She said the increase in the amount of deposits covered by the government's security guarantee was regulated through a government regulation in lieu of law (Perpu) on the Amendment of Law No. 25 / 2004 on Savings Guarantor Institution (LPS).
The minister said that through the Perpu on the Saving Guarantor Institution (LPS) the government increased the criteria that could be used to change the value or amount of deposits that could receive security guarantee from the LPS.
"Based on the law on LPS, there are three criteria which allow the government to change the provisions on security guarantee. In the Perpu, the criteria are added," Sri Mulyani said.
She said that the three previous criteria were on the occasion of bank rush, on the occasion of hyper-inflation and when the number of guaranteed customers was less than 90 percent.
The minister said that at the present condition (with upper limit of deposits receiving guarantee at Rp100 million), about 95 percent of customers had received a guarantee, but with the global financial crisis threat, the government considered the need to add one more criterion.
The additional criterion is 'on the situation of financial crisis threat which endangers national financial system.'
In implementing the Perpu, the government has issued a government implementing regulation (PP) which set the upper limit of deposits at Rp2 billion under the security guarantee of the LPS.
Previously, the LPS provides a guarantee for a deposit account of up to Rp100 million. With the PP, the upper limit of deposits to be guaranteed was raised to Rp2 billion for each account.
"The Perpu and PP are effective October 13, 2008," the minister said.
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