The Presence of IDIC in Indonesia

The role of IDIC is particularly significant within the context of Indonesia's banking industry, which serves as a critical component of the national economy. Banks act as intermediary institutions that facilitate economic growth, making the stability of the banking system vital to overall economic health.

Indonesia experienced a severe banking crisis during the Asian financial crisis of 1998, which led to the liquidation of 16 banks and a marked decline in public trust in the banking system. In response, the Indonesian government implemented several key policies aimed at restoring stability. These included a blanket guarantee on all bank obligations, encompassing customer deposits, as outlined in Presidential Decree No. 26 of 1998 and Decree No. 193 of 1998.

While the blanket guarantee effectively restored public confidence, it also resulted in moral hazard issues for both bank management and the public. To address these concerns and maintain depositor security while ensuring systemic stability, the government recognized the need to transition from a broad guarantee program to a more limited one. This led to the establishment of a deposit insurance and bank resolution institution.

In 2004, the Indonesian government enacted Law Number 24 of 2004, which laid the foundation for the Indonesia Deposit Insurance Corporation (IDIC). Following its establishment, IDIC officially commenced operations on September 22, 2005. Since then, it has played a pivotal role in safeguarding depositor funds and contributing to the stability of Indonesia’s banking sector.

IDIC Recognized as a Top Employer in Asia 2024

IDIC has been honored as one of the Best Companies to Work For in Asia 2024 during the prestigious HR Asia Awards held on May 31, 2024. This recognition highlights IDIC's unwavering commitment to fostering employee engagement and effective talent management. The organization places significant emphasis on continuously evaluating and optimizing its human resources practices. By doing so, IDIC aims to cultivate a workforce that is both agile and highly productive.

Central to IDIC's human resource management strategy is its Employee Value Proposition (EVP), which encompasses four fundamental pillars: Learn, Empower, Advantages, and Deeper Connection (LEAD). This framework not only illustrates IDIC's dedication to the development of its employees but also underscores the organization's commitment to fostering optimal contributions from its staff. IDIC prioritizes creating a work environment that is not only productive but also comfortable and supportive, allowing employees to thrive.