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Investor Presentaiton

BGM 20-21 JANUARY 2021 Further Strengthening of an Accommodative Bank Indonesia's Policy Mix BGM 18-19 NOVEMBER 2020 BGM 16-17 DECMBER 2020 BGM: Lower BI 7-day Reverse Repo Rate Stabilization Of The Rupiah Money Market & Foreign Exchange Quantitative Easing Macro- Prudential Policy Payment System Policy Board of Governor Meeting Source: Bank Indonesia 1. 1. BI7DRR lower 25 bps at 3,75% for maintain external stability and inflation is predicted to remain low 2. 3. providing economic recovery, including Hold BI7DRR at 3,75% % for maintain external stability and inflation is predicted to remain low Maintaining rupiah stabilization policy in line with fundamental value & market mechanisms Strengthening MO strategy in order to accelerate monetary policy 1. 2. 3. 4. 2. Focusing on the quantity channel by liquidity to stimulate supporting Government in accelerating 2020 state budget realization 3. Maintaining rupiah stabilization policy in line with fundamental value & market mechanisms 4. Strengthening MO strategy to accelerate MP transmission 5. Accelerate the deepening of the development of the foreign exchange market and the domestic financial market through the implementation of BPPU 2025 6. Maintain a CCB ratio of 0%, RIM 84- 94%, PLM 6% as well as 6% repo flexibility and LTF / FTV ratio for property loans. 7. Strengthening macroprudential policy to stimulate inclusive financing, in particular for small and medium enterprises (SMEs) 8. Strengthening payment system digitalization in order to build economic recovery momentum through several digital transformation initiatives, including: expanding access to digital financial economy services for SMEs & public, collaboration between banks & fintech; promoting broader acceptance of digital payments through the QRIS 9. Reducing service fees for the BI-RTGS, Extending the period of lower service fees for the SKNBI, & lower payment limit and late payment fees for CC 5. 6. 7. 8. 9. Strengthening accommodative macroprudential policy to stimulate growth of loans allocated to priority sectors towards national economic recovery, while maintaining financial system resilience Promoting lower lending rates through close supervision and public communication in coordination with the Indonesian Financial Services Authority (OJK) in terms of interest rate transparency in the banking industry Strengthening money market deepening by expanding underlying DNDF to boost liquidity and reinforce JISDOR as a reference for exchange rate setting in forex market Strengthening integrated bank supervision coordination between BI, OJK and LPS to maintain financial system stability Accelerating digital transformation & synergy to strengthen economic recovery momentum with robust payment system policy and faster implementation of BSPI'25 Extending the 0% MDR on QRIS transactions for micro enterprises until 31/3/2021 10. Strengthening and expanding electronification and digitalization centrally and regionally 11. Promoting technology innovation, utilization & collaboration between the banking & FinTech industries through faster implementation of Sandbox 2.0, encompassing, i.g: the regulatory sandbox, industrial tests, innovation lab & start-ups 4. 5. 6. 7. 8. Hold the BI 7-Day Reverse Repo Rate at 3.75%, while also maintaining the Deposit Facility (DF) rates at 3.00% and Lending Facility (LF) rates at 4.50%. Maintaining rupiah exchange rate stabilisation policy in line with the currency's fundamental value and market mechanisms. Strengthening the monetary operations strategy in order to reinforce the accommodative monetary policy stance. Accelerating money market deepening by strengthening JISDOR as a rupiah reference rate against the US dollar in order to increase domestic foreign exchange market credibility and support exchange rate stability in Indonesia. BI has strengthened JISDOR in terms of the methodology, transaction monitoring period and publication schedule. Strengthening accommodative macroprudential policy to stimulate growth of loans/financing allocated to priority sectors towards national economic recovery. Promoting lending rate transparency in the banking industry in order to accelerate monetary and macroprudential policy transmission. Strengthening coordinated and integrated bank supervision between Bank Indonesia, the Indonesian Financial Services Authority (OJK) and Deposit Insurance Corporation (LPS) to maintain financial system stability. Strengthening payment system policy and rupiah currency management to establish a digital economy and finance ecosystem in order to accelerate the economic recovery by: a. Applying an integrated and collaborative strategy to expand QRIS acceptance to 12 million merchants, while developing QRIS features, such as transfers, withdrawals and deposits, in order to boost public QRIS acceptance. b. Implementing payment system regulatory reforms in accordance with Bank Indonesia Regulation (PBI) No. 22/23/PBI/2020 through industry restructuring, license reclassification, ownership, technological innovation, including data and information, as well as strengthening supervision, including cyber risk management. 94 ==
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