Archive · 29 Dec 2025
Indonesia Phases Out Jibor for Indonia
Indonesia is changing its main money-market benchmark from Jibor to Indonia.
This change is happening because Indonia is more transparent and based on real transactions, which helps the central bank pass on lower interest rates to businesses and people.
The transition started in 2018 and will be fully completed by January 1, 2026.
Other countries in Southeast Asia, like Thailand and Malaysia, are also making similar changes.
This move is expected to make the money market work better and more efficiently.
Indonesia is replacing the Jakarta Interbank Offered Rate (Jibor) with the Indonesia Overnight Index Average (Indonia) as its money-market benchmark.
The transition started in August 2018 and will be fully completed on January 1, 2026.
Indonia is based on real transactions, making it more transparent and reliable than Jibor.
The shift aims to improve the transmission of lower interest rates to support economic growth.
Other Southeast Asian countries, like Thailand and Malaysia, are also moving towards transaction-based benchmarks.
- Who
- Bank Indonesia, local financial institutions, and Southeast Asian countries
- What
- Transition from Jibor to Indonia as the money-market benchmark
- When
- Full transition on January 1, 2026, with a start in August 2018
- Where
- Indonesia, with similar moves in Thailand and Malaysia
- Why
- To improve transparency, deepen the domestic funding market, and align with global standards
- Benchmark Replaced
- Jakarta Interbank Offered Rate (Jibor)
- New Benchmark
- Indonesia Overnight Index Average (Indonia)
- Transition Start Date
- August 2018
- Full Transition Date
- January 1, 2026
- Current Daily Transactions
- 54 trillion rupiah (October 2025)
- Projected Daily Transactions by 2030
- 81 trillion rupiah
- Interest Rate Cuts in 2025
- 125 basis points
- Lending Rate Reduction
- 24 basis points