2022 State Budget and Fiscal Incentives Presentation
Overnight Index Swaps (OIS) & Interest Rate Swaps (IRS)
As hedging instruments against Rupiah interest rate changes
IRS market development
OIS market development
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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.
OIS is an interest rate swap agreement based
on a daily overnight reference rate (IndoNIA)
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
Improvement of
IRS transaction
liquidity
rate
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
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