BI Prepares BI-FRN Issuance And OIS Development To Strengthen Financial Markets
BUKITTINGGI - Bank Indonesia (BI) plans to launch a new instrument in the form of a BI-FRN (Floating Rate Note) and develop an Overnight Index Swap (OIS) with a tenor above overnight. This step aims to form a interest rate structure that further reflects the real condition of transactions in the money market.
Director of the BI Department of Economic Policy and Monetary Budi Winantya explained that the issuance of BI-FRN is intended to enrich the choice of financial instruments as well as deepen the national financial market.
"In the future, this instrument will be added with BI-FRN to enrich the instruments as well as deepen the financial market," he said in a journalist training, Friday, October 24.
On the same occasion, Executive Director of the BI Communication Department, Ramdan Denny Prakoso, added that the development of the instrument is part of BI's ongoing efforts to strengthen Indonesia's financial markets.
According to him, the deepening of the financial market is expected to encourage the real sector through increasing lending.
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"The expansion of the issuance of securities extends it to other securities that have high quality," he said.
He emphasized that this step was part of BI's strategy to strengthen financial system stability and encourage national economic growth.
However, Denny has not detailed the mechanism for issuing the securities and only said that BI plans to announce details of its mechanism in the first or second week of November 2025.