2022 State Budget: Fiscal Policy and Structural Reform

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 2 Jul-19 Aug-19 Sep-19 4 20 % 26 24 22 20 18 16 14 12 10 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 ■CAR Profitability of the banking industry recorded at steady level, reflected by stable NIM and ROA at 4.52% and 1.92% respectively in October 2021. Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 % 6 Net Interest Margin Return on Assets % 4 4.52 3 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Source: Financial Service Authority (OJK) *) provisional figures due to the relaxation on financial institutions' report to OJK because of Covid-19 0 Jan-19 2 - 1.92 Feb-19 1- Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Resilient Financial Institutions ■Tier 1 Domestic financial institutions remain sound and stable, supported by strong capitals and leverage amidst hurdles due to the pandemic. CAR of the banking sector indicated ample liquidity with a value of 25.34% and Tier-1 capital at 23.74% as of October 2021.*) A RBC of the insurance industry increased and stayed well above the minimum threshold (120%) with Life Insurance RBC at 605.9% and General Insurance RBC at 352% in October 2021. Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 25.34 23.74 900 800 700 600 500 400 300 200 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 100 0 threshold Insurance RBC (Lhs)=120% Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Life Insurance (Lhs) Gearing ratio of multi-finance companies slightly decreased but remained below the threshold with a ratio of 1.93 times in Oct-21. Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21. Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 170 1.93 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 General Insurance (rhs) 400 352 350 300 250 605.9 200 threshold Insurance RBC (rhs)=120% 150 100 50 0 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21

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