LPS's Role in Supporting the Development of the Sharia Banking Industry
The Deposit Insurance Corporation (LPS) was established as a response to strengthening the banking system after the 1997/1998 monetary crisis. Theoretically, the existence of a deposit guarantee program will be able to prevent bank runs, namely events where many customers simultaneously withdraw funds on a large scale. LPS has now transformed from being just a paybox plus, then becoming a loss minimizer, and now becoming a risk minimizer. This was conveyed by the Deputy Chairman of the Board of Commissioners of the Deposit Insurance Corporation, Dr. Lana Soelistianingsih, MA at the Guest Lecture activity of the FEB UIN Syarif Hidayatullah Postgraduate Program (07/11/2023).
She further said that there was a strengthening of the function of the Deposit Insurance Corporation (LPS) through Law no. 4 of 2023, better known as the P2SK Law. LPS has a role in the Financial System Stability Committee in Indonesia together with the Ministry of Finance, Bank Indonesia and the Financial Services Authority.
The presentation was then continued by Herman Saheruddin, M.S.M., Ph.D as Director of the LPS Research Group with moderator Rahmawati, Ph.D (Sharia Banking Doctoral Study Program Secretary). In his presentation, he said that the market share of Islamic bank assets continues to increase. LPS will institutionally guarantee all customer deposits from both conventional and sharia banks. Currently, the process of guaranteeing customer deposits at sharia banks uses sharia contracts based on DSN-MUI Fatwa No. 118 of 2018 concerning Guidelines for Guaranteeing Sharia Bank Customer Deposits.
This activity was opened by Prof. Dr. Ibnu Qizam, M.Si as Dean of the Faculty of Economics and Business at UIN Syarif Hidayatullah. This activity was held in collaboration with the FEB UIN Syarif Hidayatullah Jakarta Postgraduate Program with the DPP Indonesian Lecturers Association, the Association of Sharia Economics Lecturers (ADESY), and the IAEI UIN Syarif Hidayatullah Commissariat. The FEB UIN Syarif Hidayatullah Postgraduate Program consists of a Masters in Sharia Economics, a Masters in Sharia Banking, and a Doctorate in Sharia Banking.