BI Stops Publication Of JIBOR In 2026

JAKARTA - In line with the benchmark rate reform agenda that has been running in the global financial market, various authorities, institutions, and market participant associations in various countries have followed up on reforms to strengthen interest rates, through the transition from using the Interbank Offered Rate (IBOR) which is quote-based, to becoming a more credible interest rate reference using transaction references that occur in the market (transaction-based).

Following up on this, Bank Indonesia as the manager (administrator) of the Jakarta Interbank Offered Rate (JIBOR) has permanently determined the permanent suspension of JIBOR publications in all tenors (tensors 1 week, 1 month, 3 months, 6 months, and 12 months), starting from January 1, 2026.

Assistant Governor of the Communication Department of Bank Indonesia Erwin Haryono conveyed that the date for stopping the JIBOR publication is expected to provide certainty for market participants to use the transaction-based rupiah interest rate reference, namely Indonesia Overnight Index Average (INDONIA).

"This announcement will be a reference in the adjustment of contractual triggers for the calculation and use of fallbacks for financial contracts that use JIBOR," he said in his statement, Friday, September 27.

Meanwhile, Fallback is a clause that regulates that if there is a change in the rules of the agreement throughout the entire contract, there will be a further mechanism / agreement to accommodate changes to the initial agreement.

Erwin said that in support of the announcement of the plan to stop the JIBOR publication, the National Working Group on Benchmark Reform (NWGBR) has published the JIBOR transition guide today, September 27.

Meanwhile, the National Working Group on Benchmark Reform (NWGBR) consisting of the Ministry of Finance, Bank Indonesia, the Financial Services Authority, and the Association of Indonesian Foreign Markets and Valutas (APUVINDO), has a function to provide information for market participants regarding the benchmark reform agenda and recommendations for interest rates referrals in the domestic financial market.

Erwin explained that the JIBOR Transitional guide aims to provide transitional implementation guidelines for market players and all stakeholders to support the smooth JIBOR transition.

"In the guidebook, among others, NWGBR recommends alternative reference rupiah interest rates based on transactions, namely, INDONESIA," he explained.