Indonesia Set to Revamp Benchmark Rates for Money Market

Indonesia is set to phase out a key money-market benchmark this week, concluding a years-long transition to align with global standards.

Bank Indonesia will retire the Jakarta Interbank Offered Rate and fully replace it with the Indonesia Overnight Index Average, known as Indonia, on Jan. 1, as it aims to improve transparency and deepen the domestic funding market. Local institutions have been using the alternative reference rate as part of the transition process since August 2018.