BI Strives To Deepen The Financial Market Through Increasing Transaction Volume

JAKARTA - Senior Deputy Governor of Bank Indonesia (BI) Destry Damayanti emphasized that the central bank continues to encourage the deepening of the financial market through increasing transaction volume and forming more credible prices.

In the money market, he said, the focus is directed on repo and Overnight Index Swap (OIS) transactions which refer to the INDONESIAN benchmark interest rate.

Meanwhile, in the foreign exchange market (foreign exchange), strengthening is carried out through Domestic Non-Delivereable Forward (DNDF) and FX Swap, with reference to the JISDOR exchange rate and non-USD/IDR reference exchange rate.

BI itself has launched the OIS matchmaking on Friday, September 26, 2025. Destry explained that the matchmaking OIS functions to facilitate the matching of interbank transactions so that prices are formed more efficiently and market interactions are smoother.

Destry explained that the OIS matching functioned to facilitate the matching of interbank transactions so that prices were formed more efficiently and market interactions were smoother.

The availability of the INDONIA-based benchmark interest rate is also expected to strengthen the price mechanism of the OIS instrument which is forward looking.

BI recorded positive developments in the foreign exchange market. As of August 2025, the daily average of DNDF transactions reached 212 million US dollars or about ten times higher than the initial implementation in 2018.

According to BI, this achievement still needs to be improved.

"Of course BI cannot be alone, we need synergy and cooperation together," said Destry as quoted by ANTARA, Sunday, September 28.

In line with that, according to the Chief Executive of Banking Supervision of the Financial Services Authority (OJK) Dian Ediana Rae, the use of INDONESIA as an OIS reference is a strategic step to increase credibility, transparency, and the effectiveness of the rupiah interest rate, in line with global interest rate reform.

OJK is committed to monitoring, assisting, and encouraging the use of INDONESIA-based instruments to provide optimal benefits for financial system stability.

"With the synergy of all stakeholders, we are optimistic that Indonesia's financial markets will be more competitive and globally competitive," said Dian.

In terms of industry, real support is shown by the signing of 105 new derivative master agreement contracts and 23 commitments to contracts for the implementation of margins by 56 banks.

Langkah tersebut mencerminkan keseriusan perbankan untuk memperkuat fondasi pasar domestik, khususnya dalam pengembangan OIS dan DNDF.

Namun, Destry menekankan agar komitmen tersebut tidak berhenti di atas kertas, melainkan diwujudkan melalui peningkatan transaksi nyata di pasar.

Sinergi lintas otoritas dan pelaku pasar diharapkan akan semakin memperdalam, melikuidkan, dan memperkuat daya tahan pasar uang serta valas domestik.

Dengan demikian, pasar keuangan Indonesia dapat menjadi pilar penting bagi pembiayaan pembangunan ekonomi yang berkelanjutan.

The move reflects the seriousness of banks to strengthen the foundations of the domestic market, particularly in the development of OIS and DNDF.

However, Destry emphasized that this commitment does not stop on paper, but is realized through an increase in real transactions in the market.

Synergy across market authorities and actors is expected to deepen, liquidate, and strengthen the resilience of the money market and domestic foreign exchange.

Thus, Indonesia's financial markets can become an important pillar for financing sustainable economic development.