JIBOR is a money market benchmark rate. Calculated periodically, JIBOR is available to market participants for use as a reference to determine lending rates as well as set prices and measure the performance financial instruments. JIBOR is the average indicative unsecured lending rate offered by contributor banks to other contributor banks for rupiah lending in Indonesia with a tenor longer than overnight.
JIBOR is determined by Bank Indonesia based on the indicative offered rates quoted by Contributor Banks to Bank Indonesia during the submission window from 07:00 WIB to 09:30 WIB (with an online correction window until 09:45 WIB). Furthermore, JIBOR is calculated using a simple average of the quotations submitted by Contributor Banks after excluding 15% of the highest and 15% of the lowest offered rates.
Bank Indonesia publishes JIBOR on its official website each business day at 10:00 WIB, consisting of overnight, 1-week, 1-month, 3-month, 6-month and 12-month tenors.
To enhance JIBOR credibility as a money market reference rate, Bank Indonesia has introduced several refinements. As of 2nd January 2019, JIBOR is determined referencing transaction data based on good governance, which is expected to reflect actual market rates in line with international best practices as stipulated in the IOSCO Principles for Financial Benchmarks published by the International Organisation of Securities Commissions (IOSCO).
Enhanced money market benchmark rate credibility is expected to reduce the complexity of financial contracts by facilitating standardisation through the use of reference interest rates for debt instruments and/or lending based on floating interest rates, rupiah interest rate derivatives and for the evaluation of financial instruments.
As of 2nd January 2019, Bank Indonesia no longer publishes the overnight JIBOR. Consequently, JIBOR consists of five tenors, namely 1-week, 1-month, 3-month, 6-month and 12-month tenors, published daily on Bank Indonesia's website at 11:00 WIB of each business day.
A brief explanation of IndONIA is as follows:
| No |
Subject
|
Information
|
| 1 |
Publication Time
|
10.00 WIB
From 2nd Januari 2019:
11.00 WIB
|
2
|
Tenor
|
Overnight, 1-week, 1-month, 3-month, 6-month and 12-month
From 2nd January 2019:
1-week, 1-month, 3-month, 6-month and 12-month
|
3
|
Day Count Convention
|
Actual/360 |
4
|
Calculation Method
|
Simple average after excluding 15% of the highest and 15% of the lowest offered rates.
|
Provisions concerning JIBOR are contained in Bank Indonesia Regulation (PBI) No.20/7/PBI/2018 dated 24 Juli 2018 concerning the Indonesia
Overnight Index Average andJakarta Interbank Offered Rate.
Information about IndONIA
Financial Market Development Department
Telp: (021) 2981-4013, 2981-4897
Fax: (021) 2311-325, 3504-296
Email: indonia.jibor@bi.go.id
