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🇮🇩 Indonesia /Economy & Trade

Deposit insurer says high interest rates remain reasonable for digital banks seeking customers

From Republika · () Indonesian

Translated from Indonesian and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • Indonesia’s Deposit Insurance Corporation said higher deposit rates offered by digital banks are reasonable while they build their customer base.
  • LPS Chairman Anggito Abimanyu said lower operating costs allow digital banks to use higher rates as an initial incentive for savers.
  • He expects rates to decline as digital banking expands and competition increases, while warning that high interest rates should not be the sole reason customers choose a bank.

Indonesia’s Deposit Insurance Corporation says high deposit rates at digital banks are not a problem, as long as attracting customers is not their ultimate purpose.

Digital banks have different characteristics from other commercial banks. Their costs are low.

· Anggito AbimanyuThe LPS chairman explained why digital banks can use higher deposit rates while developing.

LPS Chairman Anggito Abimanyu said digital banks have different characteristics from conventional banks, including relatively lower operating costs. He spoke at the Lampung Financial Festival 2026 in Bandar Lampung on Friday night.

According to Anggito, digital banks that are still developing tend to offer higher rates than other banks to encourage people to place their money with them. He described those rates as a temporary lure that helps digital banks expand their customer base.

They need a kind of lure now, a lure so people are willing to put their money in digital banks.

· Anggito AbimanyuHe described higher rates as an initial incentive for attracting savers.

He said the approach remains reasonable if it forms part of a transition rather than becoming the banks’ final objective. As digital banks become more established and their numbers grow, competition is expected to increase and the rates they offer may fall.

It is fine as long as that is not the ultimate goal. It is a transition.

· Anggito AbimanyuHe said high rates are acceptable while digital banks expand their customer base.

Anggito said higher rates can encourage people to begin using digital banks and depositing funds with them. However, he stressed that attractive interest rates should not become the only reason people select a digital bank.

When digital banks are widespread and numerous, interest rates may fall.

· Anggito AbimanyuHe predicted that greater competition could reduce the rates offered by digital banks.
About this summary

Originally published by Republika in Indonesian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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