No. 26/209/DKom
In accordance with the benchmark rate reform agenda currently underway in the global financial markets, various authorities, institutions and market associations in different jurisdictions have strengthened reference rate reform by transitioning from the use of quotation-based Interbank Offered Rates (IBOR) towards more credible transaction-based reference rates. In response, as the administrator of the Jakarta Interbank Offered Rate (JIBOR), Bank Indonesia has decided to permanently discontinue JIBOR publication for all tenors (1 week, 1 month, 3 months, 6 months and 12 months) from 1st January 2026. Confirmation of the discontinuation date is expected to provide assurance for market players using the transaction-based rupiah reference rate, namely the Indonesia Overnight Index Average (IndONIA). This announcement serves as a reference for the contractual triggers and fallback[1] rates for financial contracts based on JIBOR.
Supporting the announcement for the planned discontinuation of JIBOR publication, the National Working Group on Benchmark Reform (NWGBR)[2] today (27/09/24) issued JIBOR transition guidelines, which aim to provide transition guidance for market players and all stakeholders to ensure a seamless JIBOR transition. Among others, the NWGBR recommends an alternative transaction-based rupiah reference rate, namely IndONIA.
Jakarta, 27th September 2024
Communication Department
Erwin Haryono
Assistant Governor
[1] Fallback refers to contractual provisions during the contract period concerning further mechanisms/agreements to accommodate changes in the initial agreement.
[2] With members including the Ministry of Finance, Bank Indonesia, Financial Services Authority (OJK) as well as Indonesia Money Market and Foreign Exchange Market Association (APUVINDO), the NWGBR functions to provide information to market players concerning the benchmark reform agenda along with recommendations for reference rates in the domestic financial markets.
