As per January 2019, JIBOR has been switched to IndONIA for overnight rates. Both rates are daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the Indonesia wholesale money market. On the international front, LIBOR is being replaced with SOFR, and is estimated to be fully transitioned by the end of 2021. As banks in Indonesia reference these rates for their products, this transition can lead to significant impact to the Bank’s pricing, contracts, methodologies and business processes.
KPMG performed road show and conducted survey regarding LIBOR transition in 2019 across Asia Pacific countries, including Indonesia. With this report, we are hoping to bring awareness of where your Bank should stand today in regards with LIBOR transition implementation program.
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