2022 State Budget: Fiscal Policy and Structural Reform
Overnight Index Swaps (OIS) & Interest Rate Swaps (IRS)
As hedging instruments against Rupiah interest rate changes
IRS market development
OIS market development
We're
Here
3
IRS is a contract between two parties to
periodically exchange rupiah interest rate flows
during the contract period or at the completion
of the contract based on certain notional
amount. IRS pricing is based on JIBOR.
IndoNIA & JIBOR
Strengthening
reference rate
based on real
transactions
Source: Bank Indonesia
OIS transaction
with IndoNIA as
benchmark rate
Alignment
between JIBOR
and OIS interest
rate
Improvement of
IRS transaction
liquidity
OIS is an interest rate swap agreement based on
a daily overnight reference rate (IndoNIA)
Encourage price transparency in the rupiah
money market
Strengthen monetary policy transmission
Provide alternative hedging instruments
against rupiah interest rate changes
Support securities market deepening in
Indonesia
166View entire presentation