Inflation Control and Financial Facilities Strategy

Government Support for MSMEs During the Covid-19 Pandemic In the form of relaxation of asset quality assessments, postponement of principal & interest subsidies, low-interest working capital loans guaranteed by Askrindo and Jamkrindo, tax incentives for MSMEs borne by the government, and Productive Presidential Assistance for Micro Enterprises MSMES CREDIT RESTRUCTURING WORKING CAPITAL CREDIT ASSET QUALITY 1 ASSESSMENT According to POJK No. 2 POSTPONEMENT OF PRINCIPAL & INTEREST SUBSIDIES 3 LOW INTEREST Placement of Rp30 Trillion Government Funds at Bank Himbara Asset 11/POJK.03/2020 & 14/POJK.05/2020 Arrangement: Quality Loans IDR 10 billion can be based only on the accuracy of principal interest payments Restructurisation: The credit quality for affected debtors is determined to be current since restructuring The restructuring is carried out without a ceiling limit / type of financing KUR Super Mikro Loan up to IDR 10 million Interest subsidy will be 19%, debtors pays 0% interest from Aug - Dec 2020. • KUR MKM (SMEs): Loan up to Rp10 million up to IDR 500 million Postponement of installments and a 6% interest subsidy for the period from Apr-Dec 2020 to 0%. • 4 • Loan Rp500 million up to IDR 10 billion Postponement of installments and interest subsidies from 3% to 3% for the period Apr-Jun 2020 and interest subsidies from 2% to 4% for the period Jul-Sep 2020. 5 UMI, Mekaar, Pegadaian (Pawnshop) • • Postponement of principal installments and interest subsidies for 6 months from Apr-Sep 2020 Fintech Loan, Co-op, Farmers, LPDB, LPMUKP, UMKM PEMDA 6 GUARANTEE Government support in the form of guarantees by Askrindo and Jamkrindo OTHER SUPPORT Income Tax for MSMEs is borne by Government MSMEs receive a final PPh rate of 0.5% (PP 23/2018) borne by the government (DTP). Relaxation is given a 6% interest subsidy for 6 months MICRO BUSINESS PRODUCTIVE PRESIDENT ASSISTANCE Direct assistance to 12 million Micro-Business Actors in the amount of IDR 2.4 million per recipient Source: Coordinating Ministry for Economic Affairs 24 24

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