Inflation Control and Financial Facilities Strategy

Indonesia Has Been Rated as Investment Grade Country since 2017 BBB+ BBB BBB- Investment Grade Below Investment Grade BB+ BB BB- Fitch Ratings BBB / Stable JCRA R& August 2020, Rating Affirmed at BBB/Stable S&P Fitch Moody's B+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 The affirmation of the rating is underpinned by a favorable medium-term growth outlook and a low government debt burden compared with "BBB" category peers. S&P Global Ratings BBB / Negative April 2020, Rating Affirmed at BBB, Outlook Revised from Stable to Negative "The affirmation reflects Indonesia's stable institutional settings, strong growth prospects, and historically prudent fiscal policy settings. The negative outlook reflects S&P expectation that Indonesia faces additional fiscal and external risks related to the COVID-19 pandemic in the next 7 monthe MOODY'S Feb 2020, Rating Affirmed at Baa2/Stable Baa2 / Stable "The affirmation of the ratings is underpinned by a number of credit strengths - including Indonesia's robust and stable growth rates and a low government debt burden, preserved by consistent fiscal discipline and emphasis on macroeconomic stability - as well as persistent credit challenges." R&I March 2020, Rating Upgraded at BBB+/Stable JCR BBB+ / Stable "The upgrade reflects the firm implementation of policies to strengthen economic growth potential on the back of a solidified political foundation. As the global spread of the novel coronavirus could strain growth in the Indonesia economy, the government and the central bank are working to shore up the economy and maintain macroeconomic stability. Given the country's underlying economic strength which remains intact, R&I expects the economy to start to recover if the epidemic is brought under control" January 2020, Rating Upgraded at BBB+/Stable BBB+ / Stable "The ratings mainly reflect the country's solid domestic consumption-led economic growth, restrained budget deficit and public debt, and resilience to external shocks supported by flexible exchange rate and credible monetary policies and accumulation of foreign exchange reserves. Since its previous rating review, JCR has been paying particular attention to the continuing reform initiatives pushed by the administration of President Joko Widodo and the content and progress of the economic policy taken by his second administration which took office in October 2019. Among the reform agenda, infrastructure development has continued to progress faster than JCR had expected.". 38

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