Investor Presentaiton

Further Strengthening of an Accommodative Bank Indonesia's Policy Mixe BGM: Lower/Hol dBI 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 BGM 18-19 NOV, 16-17 DEC 2020 AND 20-21 JAN 2021 1. BI7DRR lower 25 bps at 3,75% in Nov, and Hold the rate in Dec and Jan 2021. 2. Focusing on the quantity channel by providing liquidity to stimulate economic recovery, including supporting Government in accelerating 2020 state budget realization 3. Strengthening money market deepening by expanding underlying DNDF to boost liquidity and reinforce JISDOR as a reference for exchange rate setting in forex market 4. Accelerating the deepening of the foreign exchange market and the domestic financial market development through the implementation of BPPU 2025 5. Maintaining a CCB ratio of 0%, RIM 84-94%, PLM 6% as well as 6% repo flexibility and LTF / FTV ratio for property loans. 6. Accelerating digital transformation & synergy to strengthen economic recovery momentum with robust payment system policy and faster implementation of BSPI'25 7. 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. 8. Reducing service fees for the BI-RTGS, extending the period of lower service fees for the SKNBI, and lowering payment limit & late payment fees for CC. 9. Implementing payment system regulatory reforms in accordance with 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. BGM 17-18 FEB AND 17-18 MARCH 2021 1. Lower BI7DRR to 3.50% in Feb and Hold it in March 2. Relaxing on down payment requirements automotive loans/financing to min 0% for all new motor vehicles and relaxing the LTV/FTV ratio on housing loans/financing to maximum 100% on all residential property for banks meeting specific NPL/NPF criteria, and repealing regulations on the gradual liquidation of partially prepaid property. Both effective from 1st Mar until 31st Dec 2021. 3. Publishing the "Assessment of Policy Rate Transmission to Prime Lending Rates in the Banking Industry" in February 4. Strengthening Prime Lending Rate (SBDK) transparency in the banking industry, while coordinating with the Government and other relevant authorities to: (i) accelerate monetary policy transmission to lending rates in the banking industry; and (ii) stimulate lending/financing to the corporate sector. 5. Strengthening MIR/Sharia MIR policy through the inclusion of export L/C as a financing component, while incrementally introducing regulatory disincentives in the form of MIR related reserve requirement, to stimulate bank lending to the corporate sector and export-oriented businesses 6. Supporting the Regional Digitalisation Acceleration and Expansion Teams (TP2DD) to stimulate innovation, accelerate and expand Electronification of Regional Government Transactions (ETP) and integrate the digital economy and finance. 7. Supporting development of an inclusive and efficient digital economy & finance ecosystem, by: Extending the QRIS 0% MDR for micro • enterprises until 31st December 2021; Expanding QRIS acceptance to 12mil merchant BGM 19-20 APRIL, 24-25 MAY AND 16-17 JUN 2021 1. Hold BI7DRR at 3.50% 2. Expanding the use of (SukBI) for tenors of 1 week to 12 months, effective from 16th April 2021. 3. Maintaining accommodative macroprudential policy by holding the CCyB at 0%, the MPLB at 6% with repo flexibility at 6%, as well as Sharia MPLB at 4.5% with repo flexibility also at 4.5%. 4. Expanding money market deepening efforts by accelerating the establishment of a Central Counterparty (CCP) as well as standardising repo transactions for clearing via the CCP. 5. Lowering the upper limit on credit card interest rates from 2% to 1.75% per month, effective 1st July 2021 6. Extending the National Clearing System (SKNBI) pricing policy of IDR1 from BI to banks and a maximum of IDR2,900 from banks to customers from 30th June 2021 previously until 31 Dec 2021 7. Extending policy of lower late payment penalties on credit cards at 1% of the outstanding balance, or max of IDR 100,000, until 31 Dec 2021, to encourage the use of credit cards as a private consumption buffer to support the national economic recovery. 8. Strengthening PLR transparency in the banking industry with an emphasis on suppressing higher interest rates on new loans, the affecting factors (increasing risk perception and profit margin) as well as PLR analysis at individual banks 9. Accelerating the money market deepening program by strengthening the corresponding regulatory framework and implementing the Multi-Matching ETP, specifically targeting the Rupiah money market and FX market. 10.Strengthening QRIS policy by: • . Raising the QRIS transaction limit from IDR 2 mil to IDR 5 mil, effective from 01/05/21 Lowering the MDR for Public Services Agencies (BLU) and Public Service Obligations (PSO) 0.7% to 0.4% effective from 01/06/21 119

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