Investor Presentaiton

Assessment of Policy Rate Transmission to Prime Lending Rates in the Banking Industry Bank Indonesia published the “Assessment of Policy Rate Transmission to Prime Lending Rates in the Banking Industry" to accelerate monetary policy transmission and expand the dissemination of information to corporate and individual consumers in order to enhance governance, market discipline and competition in the credit market. Key Takeaways Prime lending rate response to lower policy rate (BI7DRR) still rigid. Greater prime lending rate rigidity at state-owned banks compared with other bank groups. Prime lending rate rigidity found across all credit segments, excluding micro loans. Notwithstanding, the lending rate response to a lower policy rate and loose liquidity conditions in the banking industry remains rigid. This is reflected by significant rigidity in the Prime Lending Rate (PLR)2 in response to the lower policy rate • The prime lending rate is used as the basis for determining the interest rate to be charged by the bank to the customer yet does not include the risk premium. Therefore, the interest rate charged by the bank to the borrower is not necessarily the same as the prime lending rate. PLR rigidity is a facet of nearly all credit segments, affecting consumer loans, corporate loans and retail loans. The rigid banking industry response, as reflected by smaller increments of prime lending rate reductions, has been observable in non-housing consumer loans (67bps) as well as housing loans (57bps) since June 2019 1 Assessment period until December 2020 based on data availability. 2 The prime lending rate is the base rate published by banks in accordance with OJK Regulation (POJK) No. 37/POJK.03/2019, dated 19th Dec 2019, concerning Bank Report Transparency and Publication. Source: Bank Indonesia • • Prime Lending Rate and Deposit Rate Response to BI7DRR 1 Bank Indonesia has maintained an accommodative monetary and macroprudential policy stance in order to stimulate economic growth. Prior to the Covid-19 pandemic, from June 2019 until Feb 2020, BI lowered the BI7DRR policy rate five times by a total of 125bps from 6.00% to 4.75%. From March 2020, Bank Indonesia lowered the policy rate another four times (100bps) to a level of 3.75% in November 2020. In terms of liquidity, accommodative monetary and macroprudential policy significantly boosted liquidity in the banking industry in order to maintain financial system stability and the bank intermediation function. Graph 1. 12 BIZDRR Monthly Deposit Rate SBDK - Prime Lending Rate (SBDK) R 6 4 2 % Graph 2. 12 " " 10 Prime Lending Rate (SBDK) based of banking group Regional Govt Banks (BPD) State Owned Banks (BUMN) National Private Commercial Banks (BUSN) Foreign Branch Banks (KCBA) Prime Lending Rate (SBDK) based of credit segment Mortgage (KPR) Graph 3. 1A 15 14 15 Non Mortgage (non KPR) 70 • Corporation Micro Retail *** 11,27 +10,11 1 4.27 1,7% RA 2012 2025 Sprid (BOK BITDERI Spread (B80K Sp) ******* SEDX Deposit bulum -817098 2017 20 2014 WORD BION HINN BCH 1651 1044 * * * 2017 DRAHSI 2018 Korum KPR 2019 KaNKPR K 2020 Mine 3.BD 6.17 11.15 $300 著 8 00

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