September 29, 2025 | 10:41 am
TEMPO.CO, Jakarta - Bank Indonesia (BI) records an average of US$212 million per day in Domestic Non-Deliverable Forward (DNDF) transactions, which are foreign exchange forward contract transactions against the Rupiah, settled in cash in the domestic market.
Senior Deputy Governor of Bank Indonesia, Destry Damayanti, stated that this record signifies a positive development in the foreign exchange market. "Until August 2025, the daily average of DNDF transactions reached US$212 million, or about ten times higher than its initial implementation in 2018," she said in an official statement quoted on Monday, September 29, 2025.
She further stated that this achievement still needs to be continually improved. "Of course, BI cannot do it alone; we need synergy and cooperation together," said Destry.
DNDF is one of the intervention schemes carried out by Bank Indonesia and has been in effect since 2018. The DNDF mechanism has been regulated in Bank Indonesia Regulation Number 20/10/PBI/2018 concerning Domestic Non-Deliverable Forward Transactions. Its purpose is as a hedging instrument to stabilize the exchange rate of the Rupiah and improve the liquidity of the foreign exchange market.
Destry Damayanti stated that Bank Indonesia continues to encourage the deepening of the financial market through increasing transaction volume and forming more credible prices. In the foreign exchange market, strengthening is done through DNDF and FX Swap, with reference to JISDOR exchange rates and non-USD/IDR reference rates. Meanwhile, in the money market, the focus is directed at repo transactions and Overnight Index Swap (OIS), referring to the benchmark interest rate of INDONIA.
Bank Indonesia also collaborates with the Financial Services Authority (OJK) and the banking industry in developing domestic financial instruments. Collaboration is carried out through the signing of the Interbank Derivatives Master Agreement and the launch of Matchmaking Overnight Index Swap (OIS) in Jakarta, on Friday, September 26, 2025.
It is expected that cross-authority and market player synergy will further deepen and strengthen the resilience of the domestic money and foreign exchange markets. Thus, the Indonesian financial market can become a crucial pillar for financing sustainable economic development.
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