Bank Indonesia Discontinues JIBOR, Promotes INDONIA Adoption

Background and Rationale

Bank Indonesia (BI) has officially discontinued the publication of the Jakarta Interbank Offered Rate (JIBOR) starting January 1, 2026, as part of its efforts to strengthen the credibility and reliability of Indonesia's national interest rate benchmark ¹

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Source 2

https://nasional.kontan.co.id/news/bi-resmi-hentikan-jibor-dan-dorong-penggunaan-indonia

. This move is aimed at promoting the use of the Indonesia Overnight Index Average (INDONIA) as a replacement for JIBOR.

INDONIA as a Replacement

INDONIA is considered more accurate and objective, reflecting the country's real liquidity conditions ¹

. It is calculated based on actual interbank transactions, making it a more reliable indicator of the country's monetary conditions. The adoption of INDONIA is expected to improve the transparency and efficiency of Indonesia's financial markets.

Implementation and Transition

The discontinuation of JIBOR and the promotion of INDONIA are part of BI's broader efforts to reform the country's interest rate benchmark ¹

. The central bank has been preparing for this transition by ensuring that market participants are ready to switch from JIBOR to INDONIA.

Market Impact and Reaction

The market has been gradually shifting towards the use of INDONIA, with the value of contracts referencing JIBOR decreasing by 67.7% from Rp140.37 trillion in September 2024 to Rp45.28 trillion in September 2025 ¹

. Meanwhile, the value of contracts with a fallback rate that will mature after December 31, 2025, has increased by 35.9% from Rp164.48 trillion in September 2024 to Rp223.76 trillion in September 2025 ¹

Source 1

https://finansial.bisnis.com/read/20251231/11/1940691/bi-resmi-setop-jibor-mulai-1-januari-2026-dorong-penggunaan-indonia

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