- Bank Indonesia ("BI") Board of Governor has recently issued Regulation No. 24/18/PADG/2022 ("Amendment") to amend the Regulation No. 20/19/PADG/2018 ("Regulation 20/2018") on Indonesia Overnight Index Average and Jakarta Interbank Offered Rate, which mainly revises the provisions related to Indonesia Overnight Index Average ("IndONIA"). It is provided that IndONIA may now be utilized by market actors to calculate the interest rate in various tenors, which may be conducted with the following methods: 1) simple average interest IndONIA; or 2) compounded average interest IndONIA.
- Furthermore, the Amendment has now added the provisions on IndONIA Index and Compounded IndONIA. Basically, IndONIA Index represents the accumulated values from the IndONIA with compound interests which are calculated on a daily basis. IndONIA Index will then be used to calculate the Compounded IndONIA for a certain period.
- BI will publicize the Compounded IndONIA for the following tenors through the BI website at 08.00 WIB every business day: 30 days, 90 days, 180 days, and 360 days. Aside from that, BI will also publicize the IndONIA Index which can be used to calculate the Compounded IndONIA in various tenor.
- The Amendment will come into force since on 1 January 2023.
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