BI and OJK Launch Matchmaking Overnight Index Swap
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JAKARTA, Investortrust.id — Bank Indonesia and the Financial Services Authority have launched a matchmaking Overnight Index Swap on Sunday, Sept 28, 2025, to strengthen money market development and ensure more credible pricing based on the Indonesia Overnight Index Average, known as INDONIA.
Senior Deputy Governor Bank Indonesia Destry Damayanti said the central bank has continued to push for deepening the domestic money market by increasing transaction volumes and establishing reliable pricing. She emphasized that the focus in the money market has been directed toward repurchase agreements and Overnight Index Swaps, both of which refer to the INDONIA benchmark interest rate.
In the foreign exchange market, Bank Indonesia strengthened instruments through the Domestic Non-Deliverable Forward and FX Swap, which use the Jakarta Interbank Spot Dollar Rate, known as JISDOR, and non-USD/IDR benchmark rates. Destry explained that the matchmaking mechanism for Overnight Index Swaps is designed to facilitate interbank transactions, allowing for more efficient price discovery and smoother market interaction.
She added that the availability of an INDONIA-based benchmark is expected to reinforce the forward-looking pricing mechanism of the OIS instrument. “Bank Indonesia cannot act alone; synergy and collaboration are needed,” Destry said.
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Banking Supervision Chief Executive Financial Services Authority Dian Ediana Rae said the adoption of INDONIA as the OIS benchmark is a strategic step to enhance credibility, transparency, and the effectiveness of rupiah interest rates, aligning Indonesia with global interest rate reforms.
He stressed that the authority will remain committed to monitoring, assisting, and encouraging the use of INDONIA-based instruments to support financial system stability. “With the synergy of all stakeholders, we are optimistic that Indonesia’s financial market will become more competitive and resilient,” Dian said.
Bank Indonesia reported positive developments in the foreign exchange market. As of August 2025, the daily average transaction of Domestic Non-Deliverable Forwards reached US$212 million, about ten times higher than at the start of its implementation in 2018.
To further boost activity, industry support has been crucial. This was reflected in the signing of 105 new master derivative agreements and 23 margin commitment contracts by 56 banks, showing the seriousness of the banking sector in strengthening the domestic market foundation, particularly in the development of Overnight Index Swaps and DNDFs.