The share of customer deposits or third-party funds (DPK) relative to Indonesia’s Gross Domestic Product (GDP) is still considerably lower compared to neighboring countries. This has prompted various stakeholders, including the Deposit Insurance Agency (LPS), to emphasize the importance of fostering a culture of savings to serve as a fundamental pillar for economic development.
Drawing upon data from the World Bank, which has been meticulously examined alongside the most up-to-date information, it is revealed that Indonesia’s DPK-to-GDP ratio in the year 2022 was registered at a modest 38.38 percent. This figure, when juxtaposed with the DPK-to-GDP ratios of neighboring nations, portrays Indonesia in a less favorable light. For instance, Singapore boasts an impressive DPK-to-GDP ratio of 141.14 percent, while Thailand records 135.63 percent, Malaysia stands at 122.59 percent, and the Philippines maintains a ratio of 77.74 percent.
What further compounds this situation is the perceptible deceleration in the growth of DPK throughout the current year. A closer examination reveals that the DPK growth rate achieved a respectable 8.5 percent on an annual basis (year-on-year/yoy) in the initial month of the year, January 2023. However, this growth trajectory lost momentum in the ensuing months, with February 2023 reporting a somewhat reduced growth rate of 8.18 percent yoy.
As the calendar turned to March 2023, the rate of DPK expansion tapered off once more, declining to a 7 percent yoy growth rate. This trend of sluggish growth persisted in the subsequent months, with April 2023 experiencing a growth rate of 6.82 percent yoy, May 2023 following with 6.53 percent yoy, and a further deceleration to 5.79 percent yoy recorded in June 2023. The total accumulated value of DPK in banks reached a substantial Rp8.087 trillion as of June 2023.
In addition to the DPK statistics, another concerning factor is the relatively low rate of bank account ownership among the population. Referring to data sourced from the Global Findex, a publication by the World Bank, it is evident that as of 2021, the percentage of individuals in Indonesia holding bank accounts was merely 51 percent.
Lana Soelistianingsih, the Deputy Chair of the LPS Commissioner Board, shared insights on this matter. She emphasized that while there has been a gradual increase in the ownership rate of bank accounts in recent years, Indonesia’s percentage still falls short when compared to the average for lower-middle-income countries.
Lana further elaborated on the potential ramifications of this situation, highlighting that the subdued levels of customer savings in the country are impeding the full realization of economic development opportunities, particularly those hinging on the banking sector’s capabilities.
However, Lana underscored the potential for transformative change. She contended that by encouraging a larger segment of the population to adopt a habit of saving, including the practice of depositing funds in banking institutions, the DPK-to-GDP ratio could experience a significant upswing. This, in turn, would create a more substantial pool of financial resources available for investment in developmental endeavors. Furthermore, with a robust base of savings, the process of facilitating financial support and capital allocation for various initiatives would become considerably more straightforward, alleviating the necessity for extensive efforts to attract foreign investment to fuel the nation’s development ambitions.
In summary, while Indonesia faces challenges in terms of low DPK-to-GDP ratios and account ownership rates, there exists a promising avenue for progress through the promotion of savings and financial inclusivity, ultimately catalyzing economic growth and stability.