Bank Indonesia Policy Mix

2021 Budget Financing Macroeconomic Assumption for Economic Growth Inflation Exchange Rate 10 years T-Bills Rate 5% 3% 2021 Budget 14.600 IDR/USD ICP US$ 45 per barrel 1,760.7 Revenue Expenditure State Budget (APBN):1,743.6 1,400.3 Tax Oil Lifting 705 Gas Lifting 1.007 thousand barrel of thousand barrel/day oil equivalent/day 7.29% STATE REVENUE POLICY 2,700.3 State Budget (APBN): 2,750 • Central Govt Expenditure 1.929,6 • Supporting national economic recovery by providing tax incentives selectively and prudently calculated Cutting the red tape to accelerate national economic recovery Improving public services to optimize non-tax revenue EXPENDITURE FOCUS • 357.7 Non Tax Transfer to Region & Village Fund Handling programs COVID-19 and supporting health 770.7 • Continuing social safety net to lay a solid foundation of inclusive economic recovery 2.7 Grants • Expanding access to capital for MSMEs and cooperatives through interest subsidy Supporting programs activities for impacted sectors (e.g. Tourism) FINANCING STRATEGY • Supporting the restructuring of SOES, PSA, APBN & Outlook Sovereign Wealth Fund (SWF) 939.6 Financing Deficit State Budget (APBN):1,006.4 5,7% PDB • Increasing access to financing for MSMEs and housing for low-income household • Continuing to support higher education„ research and cultural activities Source: Ministry of Finance 72

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