JIBOR

JAKARTA INTERBANK OFFERED RATE (JIBOR)

Information Data Jakarta Interbank Offered Rate (JIBOR) which was originally only accessible through terminal Commercial Bank Daily Report System (CBDR) Bank Indonesia, Thomson Reuters and Bloomberg, has expanded its publication through the website of Bank Indonesia.

Jakarta Interbank Offered Rate (JIBOR) is an indication of interest in bidding Interbank transactions in Indonesia. What is meant by offering an indication of interest is the interest rate on unsecured loan transactions between banks, reflecting:

• The interest rate offered by a bank loan to another bank at a time

• The interest rate loans that are willing to receive a bank of other banks  

JIBOR consists of two currencies namely IDR, and USD, with each consisting of 6 tenor which is 1 day, 1 week, 1 month, 3 months, 6 months and 12 months.

JIBOR is expected to be a credible benchmark interest rate and is used in many financial transactions in Indonesia, thus encouraging the deepening of domestic financial markets as it will:

a) encourage the development of mainly for Interbank transactions with a tenor of up to 1 month

of the date of transaction is very small and do not have a benchmark interest rate;

b) encourage market participants to create other money market instruments based on interest rates;

c) creating a benchmark for interest rate derivative transactions and transaction-based floating rates;

d) assist in determining bank lending and deposit interest rates for prime customers;

e) assist the establishment of benchmarks for the bond market.

According to Bank Indonesia Regulation Number 13/8/PBI/2011 dated February 4, 2011 on Commercial Bank Daily Report. Data JIBOR, which offer an indication of interest in Indonesia Interbank transactions derived from the data rate offerings Reporting Banks stipulated by Bank Indonesia as a contributor JIBOR.

Commercial Bank Daily Report (CBDR) is a report prepared and delivered daily by the Reporting Bank to Bank Indonesia, which includes transactional data and data non-transactional:

• Transactional Data: Is the data generated from the Reporting Bank transactions with other parties as a counterparty. Included in these data is the data Interbank Money Market (Interbank), Interbank Money market data based on Islamic principles, data trading securities in the secondary market, and foreign exchange transactions. Transactional Data shall be submitted immediately after the transaction in real time every day working on the report.

• non-transactional data:  It is data that does not result from the Reporting Bank transactions with other parties, and / or the position data of the transaction the Reporting Bank. Included in these data is the position of the end of the day selling foreign exchange derivative transactions with foreign investment not, the position of the end of the day of purchase of foreign exchange derivative transactions with foreign investment not, the position of the recapitulation of derivative transactions, net foreign exchange position, certain balance sheet items, the projection cash flow, rate of return of investment deposits mudharabah Islamic Bank, the base rate loans, interest rate, term deposit interest rates, discount certificates of deposit, and savings interest rate, interest rate offer, the balance position of short-term foreign loans Bank, and the position daily operating funds to foreign bank branches.

Conclusion:

London Interbank Offered Rate (JIBOR) is offering an indication of interest in the transaction Interbank Money Market (Interbank) in Indonesia, especially on unsecured loan transactions between banks. I think JIBOR is the basic interest rate for interbank rate prevailing in the Money Market Indonesia, not as a base rate / average rate of consumers in Indonesia, because all the banks in Indonesia are generally used as a benchmark BI rate.

Historical data is now accessible through the Web JIBOR Bank Indonesia with two currencies, namely IDR and USD as well as each consisting of 6 tenor which is 1 day, 1 week, 1 month, 3 months, 6 months and 12 months. In the next article I will write about the BI Rate to allow you to better distinguish between JIBOR and the BI Rate. We are sorry if there are flaws in this article. Thank You All.