Conventional Hedging Swap Buy Transaction to Bank Indonesia of External Funding
At the August 2026 Monthly Board of Governors Meeting, Bank Indonesia continued to expand its incentive measures and other policy initiatives to increase foreign capital inflows and strengthen Rupiah stability, and boost liquidity, while accelerating money market and foreign exchange market deepening
As a further measure to strengthen the Conventional Hedging Swap Buy with Bank Indonesia, Bank Indonesia introduced transaction window for Conventional Hedging Swap Buy Transaction to Bank Indonesia of External Funding, which is eligible for a 12.5 percent incentive (reduction) in the premium.
The enhancement focuses on expanding the eligible underlying transactions, from previously covering only portfolio inflow transactions to also include foreign loans by banks and foreign direct investment (FDI)
Product
- External Funding Hedging Swap Buy to Bank Indonesia (Swap PN) transactions are available against Rupiah, with the base currency for United States Dollar (USD), Onshore Chinese Renminbi (CNY), and Offshore Chinese Renminbi (CNH).
- Available tenors: 1 month, 3 months, 6 months, and 12 months.
- Eligible underlying transactions: Portfolio Investment (PI), External Debt (ED), and Foreign Direct Investment (FDI).
- The underlying transaction documents shall be final and comply with the applicable regulations (technical guidance).
- The underlying transaction may be denominated in Rupiah (for PI and FDI) or foreign currency (for ED and FDI). Where the underlying transaction is denominated in Rupiah, the nominal value of the underlying transaction shall be converted into the notional of the hedging transaction using the reference exchange rate applicable one business day prior to the transaction date (T-1). For USD, the T-1 JISDOR shall be used, while for non-USD currencies, the T-1 BI Non-USD Reference Exchange Rate shall be used.
- The nominal amount specified in the underlying transaction document shall be equal to or greater than the nominal amount of transaction.
- Each underlying transaction document may only be used for one hedging contract.
Participant
Participant in conventional monetary operations shall have a composite rating of at least 3, based on the assessment by Financial Services Authority (OJK) and shall not be subject to any temporary suspension or participation restriction sanctions with respect to monetary operations.
Pricing
A 12,5% incentive (reduction) on the BI FX Swap premium (based on Monthly Board of Governor Meeting August 2026).
Infrastructure
- Trading Platform: LSEG AD
- Settlement: RTGS (IDR) and Correspondent Bank (FX Currency)
For more information on the Conventional Hedging Swap Buy Transaction (Swap PN), please refer to the following links:
Conventional Swap Sell Hedging Transaction to Bank Indonesia for Trade and Investment in Chinese Renminbi (RMB)
Bank Indonesia has implemented window for Conventional Swap Sell Hedging Transaction to Bank Indonesia. In accordance with Monthly Board of Governor Meeting on July 22, 2026, Bank Indonesia also provides an incentive in the form of a 10% (ten percent) increase in the FX swap premium to support Local Currency Transactions (LCT) with partner countries and encourage currencies diversification of foreign exchange transactions.
As part of the initial implementation, the transaction window was provided on Thursday, July 23 2026, from 09:00 to 09:30 WIB. Subsequently, the transaction schedule is available at the following link.
Product
- FX Swap Hedging is available in CNY/IDR.
- Available tenors: 3, 6, and 12 months (tenors and schedules are announced in the Foreign Exchange Monetary Operations Schedule).
- The underlying transactions related to Trade and Investment (TI) activities in accordance with the LCT framework.
- The underlying documents are subject to the applicable provisions, are final and are denominated in CNY or CNH.
- The underlying transaction must have a remaining maturity of at least 10 (ten) days prior to the maturity of the hedging contract.
- FX Swap Hedging transactions cannot be extended (rollover) and cannot be early terminated.
- Bank Indonesia may reject an application for a Conventional Sell Swap Hedging Transaction to Bank Indonesia ((taking into consideration, i.e. the participant requirements, transaction, and underlying transaction).
Participant
- Participants in conventional monetary operations shall have a composite rating (PK) at least 3, based on the latest assessment by Financial Services Authority (OJK), and has been appointed as an Appointed Cross Currency Dealer (ACCD) under the Indonesia–China LCT framework.
- Not currently subject to sanctions in relation to Monetary Operations.
Pricing
- 1st leg rate = BI non-USD/IDR reference rate for CNY/IDR, one business day prior to the transaction (T-1).
- 2nd leg rate = 1st leg rate + BI FX Swap Premium, with an incentive of 10%.
Infrastructure
- Trading platform: LSEG AD
- Settlement: RTGS (IDR) and Correspondent Bank (CNY)
Further information on Conventional Sell Swap Hedging Transactions to Bank Indonesia for PI is available through the following links:
Domestic Non-Deliverable Forward (DNDF) Hedging to Bank Indonesia for Portfolio Investment
Bank Indonesia provides a window for Domestic Non-Deliverable Forward (DNDF) Hedging Transactions to Bank Indonesia for Portfolio Investment. In accordance with the Monthly Board of Governors Meeting (RDG) held on July 22 2026, Bank Indonesia provides an incentive of DNDF premium to increase foreign portfolio investment inflows and strengthen Rupiah exchange rate stability, while accelerating the deepening of the Money Market and Foreign Exchange Market (PUVA). The window transaction schedule is available at the following link.
Product
- DNDF hedging for portfolio investment are available in USD/IDR.
- Available tenors: 6 month and 12 month (tenors and schedules are announced in the Foreign Exchange Monetary Operations Schedule).
- The underlying transactions related to portfolio investment activities by non-residents (foreign investors) in investment instruments, namely Bank Indonesia Rupiah Securities (SRBI), Government Securities (SBN), Corporate Bonds including Asset-Backed Securities (EBA), and equities, under both conventional and sharia principles.
- The underlying documents are subject to the applicable provisions, are final and are denominated in IDR (Rupiah).
- The underlying transaction must have a remaining maturity of at least 10 (ten) days prior to the maturity of the hedging contract.
- DNDF transactions may be extended (rollover), and can not be early terminated or unwind.
- Bank Indonesia may reject an application for a DNDF Hedging for Portfolio Investment transaction (taking into consideration, i.e., the participant requirements, transaction, and underlying transaction).
Participant
- Participants in Conventional Monetary Operations shall have a composite rating (PK) at least 3 (three), based on the latest assessment by the Financial Services Authority (OJK); and.
- Not currently subject to sanctions as a Monetary Operations Participant and/or restrictions of participation in Monetary Operations.
Pricing
- The DNDF premium (swap premium) subject to 15% incentive (based on the July 2026 Monthly Board of Governors Meeting).
- The outright DNDF rate is the USD/IDR JISDOR rate at the day of the transaction plus the DNDF premium.
- The Fixing Rate is the USD/IDR Jakarta Interbank Spot Dollar Rate (JISDOR) on the fixing date.
Infrastructure
- Trading platform: LSEG AD
- Settlement: RTGS (IDR)
Further information on DNDF Hedging for Portfolio Investment is available through the following links:
Domestic Non-Deliverable Forward (DNDF) Hedging to Bank Indonesia for International Trade
Bank Indonesia provides a window for Domestic Non-Deliverable Forward (DNDF) Hedging Transactions to Bank Indonesia for International Trade. In accordance with the Monthly Board of Governors Meeting (RDG) held on July 22, 2026, Bank Indonesia provides an incentive through the expansion of DNDF Hedging with Bank Indonesia to support Local Currency Transactions (LCT) with partner countries through the diversification of foreign exchange transactions and to strengthen Rupiah exchange rate stability, while accelerating the deepening of the Money Market and Foreign Exchange Market (PUVA).
The window transaction schedule is available at the following link.
Product
- DNDF Hedging International Trade are available in JPY/IDR, CNY/IDR, and CNH/IDR.
- Available tenors: 6 months and 12 months (tenors and schedules are announced in the Foreign Exchange Monetary Operations Schedule).
- The underlying transactions related to economic activities in the context of international trade to increase the use of local currencies in international trade transactions and the development of the money market and foreign exchange market.
- The underlying transaction documents are subject to the Technical Guidelines and must be denominated in the same foreign currency as the transaction.
- DNDF transactions may be extended (rollover) and can not be early terminated or unwind.
- Bank Indonesia may reject an application for DNDF Hedging for International Trade transaction (taking into consideration, i.e. the participant requirements, transaction, and underlying transaction).
Participant
- Participant in conventional monetary operations shall have a composite rating (PK) at least 3, based on the latest assessment by Financial Services Authority (OJK);
- An Appointed Cross Currency Dealer Bank (ACCD Bank) for the related framework of currency being transacted (i.e. LCT Indonesia-China Framework); and
- Not currently subject to any temporary suspension or participation restriction sanctions with respect to monetary operations.
Pricing
- The DNDF premium (swap premium) subject to 10% incentive (based on the July 2026 Monthly Board of Governors Meeting).
- The outright DNDF rate is the BI Reference Rate for Non-USD/IDR plus the DNDF premium.
- The Fixing Rate is the BI Reference Rate for Non-USD/IDR on the fixing date.
Infrastructure
- Trading platform: LSEG AD
- Settlement: RTGS (IDR)
Further information on DNDF Hedging International Trade is available through the following links:
