<![CDATA[This study aims to understand the role of the Deposit Insurance Corporation (LPS) in maintaining the stability of the banking sector in Indonesia through a systematic literature review methodology. This study analyzes 12 articles identified from the Emerald and Elsevier databases using the keywords "deposit insurance" and "Indonesia," selected according to the PRISMA guidelines. The results show that the deposit insurance system in Indonesia, especially after the introduction of the Blanket Guarantee Scheme (BGS) after the 1998 financial crisis, has succeeded in restoring public confidence in banks despite causing moral hazard. The replacement of BGS with Limited Guarantee (LG) in 2005 improved market discipline and reduced the risks taken by banks. This study confirms that LPS is effective in providing guarantees for customer deposits, which increases public confidence and prevents bank runs. However, there are challenges in overcoming moral hazard and ensuring internal control and risk management.]]>
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