2022 State Budget: Fiscal Policy and Structural Reform

Principles of Macroprudential Liquidity Buffer (MLB) Regulation 1 Rate MLB (Conventional Commercial Bank) 4% of rupiah deposits (including Sharia Business Units deposits) 4% of rupiah deposits MLB Sharia (Sharia Banks) 2 Components Calculation Formula 4 Flexibility 5 Sources of Data Deposits on Securities denominated in rupiah held by a conventional • Sharia-complaint securities denominated in rupiah commercial bank that may be used for monetary operations held by an Sharia bank that may be used for sharia- (including SBI/SDBI/SBN); and compliant monetary operations (including SBIS/SBSN) • Sharia-complaint securities denominated in rupiah held by an Sharia business unit that may be used for sharia-compliant monetary operations (including SBIS/SBSN) Percentage of rupiah securities held by a conventional Percentage of sharia-compliant rupiah securities held by commercial bank to rupiah deposits an Sharia bank to rupiah deposits Under certain conditions, the securities used to meet the MLB may be used for repo transactions to Bank Indonesia for open market operations, totalling no more than 2% of rupiah deposits • Monthly Commercial Bank Reports • Rupiah deposits to calculate MLB are the average daily total deposits at all branches in Indonesia • Rupiah deposits include: (i) demand deposits, (ii) savings deposits; (iii) term deposits, and (iv) other liabilities Under certain conditions, the securities used to meet the sharia MLB may be used for repo transactions to Bank Indonesia for open market operations, totalling no more than 2% of rupiah deposits • Monthly Sharia Bank Reports • Rupiah deposits to calculate sharia MLB are the average daily total deposits at all branches in Indonesia • Rupiah deposits include: (i) wadiah savings; (ii) unrestricted investment funds, and (iii) other liabilities 152

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