LPS to Implement Core Banking System for Rural Banks

Digital Transformation Initiative

The Indonesian Deposit Insurance Corporation (LPS) is set to begin the procurement process for a new core banking system for Rural Banks (BPR/BPRS) in 2026. This initiative is part of LPS's broader strategy to enhance digital transformation and improve operational efficiency across these financial institutions.

Project Details and Implementation Timeline

LPS has allocated approximately Rp160 billion for this comprehensive IT project. The implementation will begin with a pilot project involving 100 rural banks, which will test the system's effectiveness and identify potential improvements before wider implementation. The core banking system is expected to improve governance, enhance reporting capabilities, and drive digitalization of operational processes across participating banks.

Strategic Importance in Financial Ecosystem

The initiative recognizes the strategic role that rural banks play in Indonesia's financial ecosystem. By modernizing their IT infrastructure, LPS aims to strengthen the stability and efficiency of these institutions, ultimately benefiting the broader financial sector. The successful implementation of this system could serve as a model for further digital transformation initiatives in other segments of Indonesia's banking industry.