JAKARTA - Bank Indonesia (BI), the administrator of Jakarta Interbank Offered Rate (JIBOR), will permanently terminate all publications of JIBOR starting January 1, 2026.
Erwin Haryono, Assistant Governor of Department of Communications of BI, mentioned that the announcement of JIBOR termination date could hopefully shed a light for market players, driving them to utilise the transaction-based rupiah reference rate, Indonesia Overnight Index Average (INDONIA).
“[BI has agreed upon] the permanent termination of JIBOR publication across all tenors, including one week, one month, three months, six months, and 12 months,” Haryono said in the press release quoted Friday (27/9).
The JIBOR termination date will be the reference for adjustment (contractual triggers) of calculations and application of fallback for financial contracts that use JIBOR. The fallback refers to clauses that ensure if any changes were made to an agreement throughout the contract, there will be further mechanism to accommodate said changes.
Several pertinent parties have published the guideline of JIBOR transition in order to lead the shift for market actors and stakeholders alike, ensuring smooth JIBOR transition.
The JIBOR termination is in line with benchmark rate reform in global financial market. In response to this, institutions and market players’ association of numerous countries lead the transition of quotation-based IBOR to a more credible rate, using transaction-based one like INDONIA. (LK/ZH)