Total Savings and Accounts in Commercial Banks

Growth in bank deposits, both in terms of total deposits and the number of accounts in general banking, has slowed. Based on data released by the Indonesian Deposit Insurance Corporation (LPS), total deposits in general banks reached Rp 5,901.14 trillion in July 2019, growing only 0.19% month-on-month (mom). This figure is slower than the previous month's growth of 2.28%.

Bima Yudhistira, a researcher at the Institute for Development of Economics and Finance (Indef), said that the slowing growth in deposits in general banks is due to weakening household consumption, particularly in the middle-to-upper income segments. In addition, the trend of declining benchmark interest rates has also reduced people's interest in saving money in banks.

Global economic conditions also contributed, eroding the turnover of several sectors. Finally, the government's aggressive stance in issuing Retail State Bonds (SBN) is blamed for slowing the growth of third-party funds (DPK) in banking.

In July 2019, the number of accounts in general banks reached 291.31 million, growing 0.77% compared to the previous month. This growth rate is higher than the previous month's 0.51%.

(Read Databoks: [Slowing Down, Third-Party Funds in Banking 2018 Grew Only 6.45 Percent](https://databoks.katadata.co.id/datapublish/2019/02/28/melambat-dana-pihak-ketiga-perbankan-2018-hanya-tumbuh-645-persen))