Investor Presentaiton

Adjustment of LTV Ratio for Property Loans, FTV Ratio for Property Financing, and Down Payments on Automotive Loans/Financing* (Effective December 2nd, 2019) Bank Indonesia adjusts macroprudential policy in the property and automotive sectors by: (i) relaxing the LTV ratio for property loans and the FTV ratio for property financing; (ii) providing additional incentive on LTV ratio for green property loans and FTV ratio for green property financing; (iii) relaxing down payments on automotive loans/financing; (iv) providing additional incentive on down payments on green automotive loans. • Policy Backgrounds In response to global and domestic economic developments, Bl is maintaining an accommodative policy mix to maintain the economic growth while also maintaining macroeconomic and financial system stability. This effort will be targeted to several potential sectors. Considering the ongoing needs to stimulate the property and automotive sectors which have a huge backward and forward linkages to other sectors in the economy, BI decides to relax LTV/FTV policy for property loans/financing and down payments on automotive loans in compliance with prudential principles. Additional incentives are also given to support sustainable development through green financing in order to reduce potential disruptions to financial system stability stemming from environmental degradation. As a prudential mitigation, those relaxations will be given to borrower with strong repayment capacity and low credit/financing risk. Main Regulatory Points 1. Adjustment of LTV Ratio for Property Loans and FTV Ratio for Property Financing. a. Bl decides to relax the LTV ratio for property loans and FTV ratio for property financing by 5% from current ratio as follows: Landed House Type >70 Type >21-70 Type $21 Table 1. Current LTV/FTV Ratio Meets NPL/NPF Criteria Property Loan & Property Financing based on Akad Murabahah & Akad 1 Istishna Does Not Meet NPL/NPF Criteria Property Financing based on Akad Murabahah & Akad Property Financing based on akad MMQa & akad IMBT 22 Property Financing based on akad MMQ & akad IMBT 1 22 1 Istichna 2 23 1 80% 85% Apartment Type >70 80% Type >21-70 85% Type ≤21 8.5% Office House 85% Landed House Type >70 Type >21-70 Type ≤21 2 23 85% 80% 70% 90% 80% 60% 70% 85% 75% 65% - 80% 70% 85% 80% 70% 60% 85% 75% 65% 85% 90% 80% 70% 90% 80% 70% 85% 80% 70% 80% 70% 85% 80% 70% 80% 70% Table 2. Adjusted LTV/FTV Ratio Meets NPL/NPF Criteria Property Loan & Property Property Financing Does Not Meet NPL/NPF Criteria Property Financing Property Financing Financing based on Akad Murabahah & Akad based on akad MMQ & akad IMBT based on Akad Murabahah & Akad based on akad MMQ & akad IMBT Istishna 22 1 22 1 Istishna 2. 23 1 2 23 1 85% 90% 90% 85% 95% 75% 85% 65% 90% 80% 75% 85% 70% 75% Apartment • Bl will regularly evaluate this policy at least once a year. Type >70 85% 90% 85% 75% 65% 90% 80% 70% Type >21-70 90% 90% 95% 85% 75% 95% 85% 75% Type $21 9.0% 90% 85% 75% 85% 75% Office House 9.0% 90% 85% 75% 85% 75% Source: Bank Indonesia *This adjustment will be effective from December 2nd, 2019 134

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