Jakarta Interbank Offered Rate (JIBOR)

The availability of JIBOR data which is previously limited through Banks’ daily reporting system (Sistem LHBU), Thomson Reuters and Bloomberg will be expanded through Bank Indonesia website.

Jakarta Interbank Offered Rate (JIBOR) is an indicative rate used for money market transactions. This indicative rate refers to unsecured loan transaction in money market, which reflects interest rate that banks charge each other for taking and offering loans. This rate is then published and served as the benchmark for market transactions. 

JIBOR consists of 2 currency which are local currency (IDR) and foreign currency (USD), of which consist of 6 tenures i.e. overnight, 1 week, 1 month, 3 month, 6 month and 12 month.   JIBOR is expected to become a credible reference rate used for financial transactions widely in Indonesia.  A credible reference rate will  support  the efforts  to deepen domestic financial market by:

a) Encouraging money market transactions  especially for longer tenures (above 1 month) which was lack of transaction due to the absence of credible reference rate;
b) Encouraging market players to initiate a variety of interest-rate base instruments; 
c) Providing a reliable reference rate for derivative and floating-rate base transactions;
d) Serving as a benchmark for bank deposit and loan rate, especially for prime customers;
e) Providing a benchmark for bond market.

Bank Indonesia set up several enhancements in regulation concerning JIBOR, as part of its continuous efforts to built JIBOR as a credible reference rate. Several enhancements that were taken on 7th February 2011 and 11th February 2013 described as follows.      

No	Item of Enhancement	Former Rule Applied	New Rule Applied on 7th February 2011	New Rule Applied on 11th February 2013
1	Window time for submitting report	07.00-17.00 WIB	07.00-10.30 WIB	07.00-10.30 WIB
2	Window time for correction	07.00-17.00 WIB	10.30-11.00 WIB	10.30-10.45 WIB
3	Fixing time of JIBOR	No fixing time; rates could change during the window time	11.00 WIB	11.00 WIB at Bank Indonesia website
4	Calculation method	Average rate of quoted rates by contributors	Average rate of quoted rates by contributors after eliminating 1 highest rate and 1 lowest rate.	Average rate of quoted rates by contributors after eliminating 25% highest rates and 25% lowest rates.
5	Evaluation period of JIBOR contributors	No evaluation of contributors since 1993	1 year (can be more than once a year if any significant changes happen to contributor).	1 year (can be more than once a year if any significant changes happen to contributor).
6	Criteria for JIBOR contributor qualification	Not specifically regulated	Market activity in money market.	Market activity in money market.

To highten JIBOR quality, Bank Indonesia carries out daily monitoring to ensure that the rates quoted by contributors plausibly reflecting market rates.

All enhancements to be taken afterward will be continuously communicated to market players and public as a part of building extensive awareness in order to make JIBOR as a credible reference rate, primarily in domestic money market.

Information about JIBOR

Settlement, Information and Administration Division: Phone: (021) 381-8401, 381-8362 Fax : (021) 231-0171, 386-4976 email : jibor@bi.go.id