Indonesia launches new overnight benchmark rate
New rate replaces the quotation-based model with one based on transactions
Indonesia’s central bank has launched a new overnight interest rate benchmark, as part of a worldwide bid to boost the credibility of such rates in the money market.
The new rate is called the Indonesia Overnight Index Average, or Indonia, and is published by the central bank on each business day at 19:30 Western Indonesia Time (12:30 GMT) starting on August 1, according to a statement by Bank Indonesia on July 24.
BI said the new rate will replace the existing, but rarely used, Jakarta
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