Investor Presentaiton

Further Strengthening of an Accommodative Bank Indonesia's Policy Mix BGM 18-19 NOV 2020 BGM 16-17 DEC 2020 BGM 17-18 FEB AND 17-18 MARCH 2021 BGM: AND 20-21 JAN 2021 1. Hold BI7DRR at 3,75% 1. providing economic supporting Lower/Hol dBI 7-day Reverse Repo Rate Stabilization Of The Rupiah 1. BI7DRR lower 25 bps at 3,75% for maintain external stability and inflation is predicted to remain low 2. Focusing on the quantity channel by liquidity to stimulate recovery, including accelerating 2020 state budget realization 3. Maintaining rupiah stabilization policy 2. Maintaining rupiah stabilization policy in line with fundamental value & market mechanisms 2. 3. Strengthening MO strategy in order to accelerate monetary policy 3. 4. Government in 5. Accelerating money market deepening by strengthening JISDOR as a rupiah reference rate against the US dollar Strengthening accommodative macroprudential policy to stimulate growth of loans/financing allocated to priority sectors towards national economic recovery. 4. 6. in line with fundamental value & market mechanisms 7. 4. Strengthening MO strategy to accelerate MP transmission 8. Promoting lending rate transparency in the banking industry Strengthening money market deepening by expanding underlying DNDF to boost liquidity and reinforce JISDOR as a reference for exchange rate setting in forex market Strengthening integrated bank supervision coordination between BI, OJK and LPS to maintain financial system stability 5. 6. Money Market & Foreign Exchange Quantitative Easing Macro- Prudential Policy Payment System Policy Board of Governor Meeting Source: Bank Indonesia 5. Accelerate the deepening of the development of the foreign exchange market and the domestic financial market through the implementation of BPPU 2025 6. Maintain a CCB ratio of 0%, RIM 84- 94%, PLM 6% as well as 6% repo flexibility and LTF / FTV ratio for property loans. 7. Strengthening macroprudential policy to stimulate inclusive financing, in particular for small and medium enterprises (SMEs) 8. 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 9. Reducing service fees for the BI-RTGS, Extending the period of lower service fees for the SKNBI, & lower payment limit and late payment fees for CC 7. 9. Accelerating digital transformation & synergy to strengthen economic recovery momentum with robust payment system policy and faster implementation of BSPI'25 8. 10. Extending the 0% MDR on QRIS transactions for micro enterprises until 31/3/2021 11. Promoting technology innovation, utilization & collaboration between the banking & FinTech industries through faster implementation of Sandbox 2.0, encompassing, i.g: regulatory sandbox, industrial tests, innovation lab & start-ups 12. Strengthening payment system policy and rupiah currency management to establish a digital economy and finance ecosystem in order to accelerate the economic recovery by: a. Applying an integrated and collaborative strategy to expand QRIS acceptance to 12 million merchants, while developing QRIS features, such as transfers, withdrawals and deposits, in order to boost public QRIS acceptance. b. Implementing payment system regulatory reforms in accordance with Bank Indonesia Regulation (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. 9. Lower BI7DRR to 3.50% in February and Hold the rate in March Strengthening rupiah exchange rate policy by maintaining market presence through triple intervention policy. Strengthening the MO strategy to reinforce the accommodative monetary policy stance. Relaxing down payment requirements on automotive loans/financing to minimum 0% for all new motor vehicles to stimulate credit growth in the automotive sector. 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 to stimulate credit growth in the property sector. Both effective from 1st Mar until 31st Dec 2021. Publishing the "Assessment of Policy Rate Transmission to Prime Lending Rates in the Banking Industry" in February. Expanding the use of Bank Indonesia Sukuk (SukBI) for tenors of 1 week to 12 months, effective from 16th April 2021. Strengthening Prime Lending Rate (SBDK) transparency in the banking industry 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 Accelerating money market deepening through repo transactions between market players and by strengthening transaction infrastructure 10. Facilitating trade and investment promotion for productive sectors and tourism as well as socialising the use of LCS domestically and internationally 11. 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. 12. Supporting development of an inclusive and efficient digital economy and finance ecosystem, specifically targeting SMEs, to drive the economic recovery, including Gernas BBI and the Indonesia Proud of Travelling Movement (GBWI) by; Extending the QRIS 0% merchant discount rate (MDR) for micro enterprises until 31st December 2021; • Expanding QRIS acceptance to 12 mil merchants I Encouraging collaboration between e-commerce, SMEs and the Government to strengthen the competitiveness of domestic SME products for the domestic and export markets. 106

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