LPS Melakukan Sosialisasi Kepada BPR di Jawa Timur
The Indonesia Deposit Insurance Corporation (IDIC) carried out an outreach event for rural banks in East Java on the 14th of December 2007. The event focused on building awareness on the deposit insurance scheme and was implemented with the cooperation of Bank Indonesia's Surabaya, Malang, Kediri, and Jember Offices (Kantor Bank Indonesia or KBI Surabaya, Malang, Kediri, dan Jember). This event was implemented in Surabaya and was attended by approximately 356 banks that comprised of 339 rural banks (BPR) and 17 Rural Syariah Banks (BPRS). Each Bank respectively sent two representatives to the event. The meeting was also attended by around 60 representatives from Bank Indonesia's Directorate for the Supervision of Rural Banks.
Opening remarks for the event were presented by Mr. Rusli Simanjuntak, the Head of KBI Surabaya, and Mr. Rudjito, the Chairman of the Board of Commissioners at IDIC. In his speech, the Chairman emphasized the background, functions and tasks of IDIC as specified within Law Number 24 of 2004. The functions of the deposit insurance corporation basically constitutes as one of the Indonesian Banking Landscape's (Arsitektur Perbankan Indonesia or API) six pillars in the form of depositor protection. In addition to this, the speech also highlighted the important role and contribution that the Rural Banks have made to regional development. To maintain public trust and confidence in rural banks, the event also highlighted the need for rural banks to adhere to prudent banking practices in line with prevailing regulations and to avoid unfair business practices.
IDIC's Risk Management Division Head, Mr. Salusra Satria, and the Insurance Division Head, Mr. Poltak L. Tobing, subsequently presided over the Deposit Insurance presentation that covered, among others: deposits that are insured, obligation of insured banks, verification and reconciliation of depositors funds, payment of claims, and bank liquidation.
A number of issues and concerns were raised by the participants during the Question and Answer session which includes the following : (i) the status of deposit insurance in syariah banks that provide profit sharing that exceeds the deposit insurance rate; (ii) suggestions that the proof of membershipin IDIC should be in the form of a certificate/plaque and not merely in the form of a sticker; (iii) complaints from rural banks about difficulties in contacting IDIC by phone; (iv) inquired about ways of obtaining information regarding IDIC'S financial statement including the amount of insurance claims paid by IDIC; and (v) suggestions that the amount of deposits insured or covered of up to Rp 100 million should be increased.
In response to these specific questions and suggestions, the representatives from IDIC indicated the following: (i) Despite instances where the levels provided by profit sharing in Syariah Banks may exceed the deposit insurance rates, such deposits will continue to be insured as the amount of profit shared in syariah banks were not agreed upon in advance; (ii) suggestions that the proof of membership should be in the form of a certificate/plaque will be taken into consideration; (iii) the relatively large number of banks that IDIC has to service in contrast to the number of staff it has is part of the reason as why banks find it difficult to contact IDIC at times and suggests that, as an alternative, banks should try to contact IDIC either through written correspondence, facsimile, or e-mail; (iv) IDIC's financial statement is revealed annually within at least 2 newspapers and is formally submitted to the President and DPR (Parliament) no later than 30th April. Within this event, IDIC presented the data on the amount of premium paid by rural banks and in particular, those from East Java; and (v) the value of deposits that are currently insured which comprise of over 98% of depositor's accounts and in accordance with Article 13 of the IDIC Law specifies that the value of deposits insured can change if it fulfills the following criteria : there are changes to the value of the deposits insured, the level of accumulated insurance reserves has exceeded its target, or there are changes to the level of risks of bank failures.