Bank Indonesia Policy Mix

2022 Proposed Budget Posture Deficit of 4.85% of GDP with flexibility to anticipate the uncertainty 2019 2020 2021 2022 Account (IDR T) Audited Audited Growth (%) Outlook Growth (%) State Revenue* 1,960.6 1,647.8 (16.0) 1,735.7 5.3 Proposed Budget 1,840.7 Growth (%) 6.0 Tax Revenue 1,546.1 1,285.1 (16.9) 1,375.8 7.1 1,506.9 9.5 Non Tax Revenue 409.0 343.8 (15.9) 357.2 3.9 333.2 (6.7) State Expenditure 2,309.3 2,595.5 12.4 2,697.2 3.9 2,708.7 0.4 Central Government 1,496.3 1,833.0 22.5 1,927.0 5.1 1,938.3 0.6 Expenditure Regional Transfer & 813.0 762.5 Village Funds (6.2) 770.3 1.0 770.4 0.02 Primary Balance (73.1) (633.6) 766.8 (595.3) (6.0) (462.2) (22.4) Surplus (Deficit) (348.7) (947.7) 171.8 (961.5) 1.5 % to GDP (2.20) (6.14) (5.82) Financing 402.1 1,193.3 196.8 961.5 (19.4) (868.0) (4.85) 868.0 (9.7) (9.7) MACROECONOMIC ASSUMPTIONS Gas Lifting equivalent per day) 987-1,007 State Revenue IDR 1,840.7 T Tax Revenue is projected at IDR 1,506.9 T supported by recovery and optimization policies. Non-tax revenue IDR 333.2 T due to not recurring non-service revenue and optimization government share of oil and gas revenue. State Expenditure IDR 2,708.7 T Directed to support policies synergies in health care, community protection and economic recovery □ Central government expenditure IDR 1,938.3 T include: - Expenditure reserves IDR 61.8 T - Health spending and vaccination in PEN Programme IDR 44.0T Transfer to Region and Village Funds IDR 770.4 T Deficit and Budget Financing IDR 868.0 T (decreased by 9.7%) Fiscal deficit ratio 4.85% of GDP With efficient and prudent financing sources, including the use of budget surplus (SAL) Economic Inflation Growth Exchange Rate 10-year T-Bonds Rate ICP (USD/barrel) 2021 Outlook 3.7-4.5% 1.8-2.5% 14,200-14,600 6.34-7.24% 55-65 Oil Lifting ('000 barrels per day) 680-705 ('000 barrels oil 2022 As agreed 5.2% 3% 14,350 6.80% 63 703 1,036 with Parliament Source: Ministry of Finance 68

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