Heaptalk, Jakarta — Public savings, especially deposits under Rp100 million, approximately US$6,137 (US$1 equals Rp16,294), are likely to struggle to see significant increases. This statement was revelaed by Purbaya Yudhi Sadewa, Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) on Tuesday (12/17) at his office. According to Yudhi, this is happening amid the policy of increasing value-added tax (VAT) to 12% in 2025.
“Purchasing power is suspected to decline; the tax increase policy is inaccurate. But I don’t know, maybe the government needs money to cover its budget, and it might be good if the money is directly used for programs beneficial to the public as well,” said Purbaya.
When public funds enter the government, Purbaya explained that they take time to return to the economic system through spending. For instance, if the funds are only spent four months later, the impact on the economy will also be delayed.
He elaborated, “Well, let’s say 4 months in the government before spending, the impact will be delayed by 4 months or more. Yes, at least in the long term, it will affect the savings trend. In the current situation, without it, it tends to decline if you look at the LPS survey. Hence, it seems it will be difficult to rise.”
However, Purbaya emphasized that the savings trend will not immediately plummet due to this policy. He acknowledged that the potential for significant increases will be more difficult. “Not yet, it won’t plummet, but I see it difficult to rise sharply,” he added.
Meanwhile, regarding Third-Party Funds (DPK) in banking, Purbaya revealed that the growth prediction is still at 6-7%. Thus far, LPS has not seen a significant impact from government policies on economic growth or DPK. “We predict DPK at 6-7%. We haven’t changed it yet. But, of course, it will be adaptive depending on developments over time,” he concluded.