Jakarta Interbank Offered Rate (JIBOR)
The Jakarta Interbank Offered Rate is an indicative rate for unsecured loan transactions on the money market offered by one contributor bank to another in order to lend the rupiah of certain tenors in Indonesia.
JIBOR is a reference rate used for financial transactions, including a reference rate for floating and derivative transactions, as well as to evaluate rupiah denominated financial instruments.
The use of JIBOR will help create a deep and liquid money market as well as boost transaction efficiency, which will ultimately reinforce monetary and financial system stability in Indonesia.
JIBOR is published through the Bank Indonesia website daily at 10:00 WIB. In addition, JIBOR is also published thorough the Commercial Bank Daily Reporting System of Bank Indonesia, Thomson Reuters and Bloomberg.
JIBOR is determined based on indicative rates submitted by contributor banks. In order to improve JIBOR credibility, Bank Indonesia requires contributor banks to receive rupiah lending and/or borrowing requests at the indicative rate submitted by the contributor bank while fulfilling certain time limits and restrictions, in effect 1st April 2015.
Furthermore, since 1st April 2015 and in accordance with prevailing practices in other countries, Bank Indonesia will discontinue JIBOR for US dollars as the rate is never used or referred to by market players.
A brief explanation of JIBOR is as follows:
||Overnight, 1 week, 1 month, 3 months, 6 months and 12 months
||Day count convention
||Simple average after omitting 15% of the highest rates and 15% of the lower rates
Provisions concerning JIBOR are regulated pursuant to the Bank Indonesia Regulation and Circular Letter on Commercial Bank Daily Reporting:
Bank Indonesia Transformation Program Centre-Financial Market Deepening Program
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