Tuesday, 5 December 2023*- At the "LPS TEACHING" event in the Fadjar Notonagoro Hall, 2nd Floor FEB UNAIR, Purbaya Yudhi Sadewa, Chair of the Board of Commissioners of the Deposit Insurance Corporation (LPS), explained the evolution of LPS in understanding the public about the "Deposit Guarantee System in Indonesia ."

The event, which was attended by more than 170 undergraduate and postgraduate students as well as lecturers, was opened by the Deputy Chancellor for Finance and Resources, Universitas Airlangga.

In this lecture, the Director of the LPS Research Group, Purbaya, revealed that LPS, born as a response to the 1997/1998 monetary crisis, continues to transform.

The economic crisis created doubts about banking, prompting the government to implement a blanket guarantee. However, these policies, while increasing trust, create budgetary burdens and moral hazard.

Purbaya detailed the transformation of LPS through Paybox Plus (2005), Loss Minimizer (2016 and 2020), to Risk Minimizer (2023). Involving additional mandates, the Banking Restructuring Program, and Fund Placement, LPS emphasized its role as a deposit guarantor and part of the Financial System Stability Committee.

Law no. 4 of 2023 strengthens the functions of LPS, including guaranteeing and protecting public funds in banks, insurance and sharia insurance. Purbaya explained the guarantee conditions, such as the bank's track record, deposit interest rate, and freedom from indications of fraud.

In maintaining financial system stability, LPS, as the implementer of bank resolution, has options for resolution methods, including payment of guarantee claims. Purbaya hopes that "LPS TEACHING" can increase public understanding of the crucial role of LPS in maintaining the stability of the Indonesian financial system.

#lpsteaching
#deposit Insurance Agency
#febunair
#faculty of economics and businessunair
#Airlangga University
#smartfaculty
#smartuniversity
#synergywithheart
#febgreatwaterchampion
#excellencewithmoratilyforIndonesia