No. 15/ 4 /DKom
A USD/IDR spot reference rate that accurately reflects market prices is required in order to bolster domestic foreign exchange market deepening. Previously, USD/IDR price information was only available based on bank quotations, which represent the buying and selling appetite of the respective bank and may not be realised in the actual transaction. Due to their lack of foundation in actual transactions, price quotations can present information that is not totally accurate, or even create asymmetric information, ultimately leading to inefficient price setting on the market.
Against this backdrop, a credible USD/IDR spot reference rate is required to support efforts to efficiently determine market prices. The reference rate, or Jakarta Interbank Spot Dollar Rate (JISDOR), aims to meet this requirement. JISDOR is a USD/IDR spot price based on interbank foreign exchange transactions, for which the data is accessible in real-time through the Rupiah to Foreign Exchange Transaction Monitoring System (SISMONTAVAR) at Bank Indonesia.
JISDOR is compiled based on the weighted average of all interbank USD/IDR transactions between 08.00 – 09.45 WIB. JISDOR is announced at 10.00 WIB on Bank Indonesia’s official website. The data will be updated each weekday, excluding national holidays and other designated holidays.
The reference rate is not mandatory. The reference rate is expected to provide credible supplementary information as a reference for financial market players when conducting their transactions. In addition, the reference rate will be used as a tool to assist monitoring activities and assessments performed by Bank Indonesia in the development of a foreign exchange market that is sound and resilient to market shocks.
Jakarta, May, 20th 2013
Head of Communications Department
Difi A. Johansyah