Indonesia's COVID-19 Vaccination and Economic Resilience Strategy

Bank Indonesia's Policy Mix Synergy Maintaining Stability and Strengthening National Economic Recovery BB BANK INDONESIA BANK MENTRAL REPUBLIK IRENESA Source: Bank Indonesia Monetary policy towards maintaining stability ■Policy rate increase as as a front-loaded, pre-emptive and forward-looking measure to lower inflation expectations, which are currently overshooting and return core inflation to the 3.0% 1% target range earlier, specifically in the first half of 2023 ■Strengthening rupiah stabilisation policy as part of the measures to control inflation, primarily imported inflation ■Continue buying/selling SBN In the secondary market to strengthen transmission of the B17DRR by increasing the attractiveness of SBN yields for foreign portfolio investment inflows to strengthen exchange rate stabilisation measures ■ Accelerating liquidity policy normalization by incrementally raising Rupiah reserve requirements to 9% on 1*September 2022 Accommodative macroprudential policy stance to reignite bank lending to the corporate sector and drive the national economic recovery, while maintaining financial system stability Incentivize banks to disburse financing to priority sectors and promote inclusive financing ■ Strengthen implementation of macroprudential Inclusive Financing Ratio (RPIM) to increase economic inclusion. unlock financial access, while strengthening MSMEs contribution to the national economic recovery Accommodative macroprudential policy stance, among others by: relaxing LTVFTV, relaxing down payment requirement, CCB0%, Macroprudential Intermediation Ratio (MIR) 84-94%. Macroprudential Liquidity Buffer (MLB) at 6% with 6% repo flexibility, Sharia Macroprudential Liquidity Buffer (SMLB)at 4.5% with repo flexibility at 4.5% ■Accelerating paymentsystem digitalization to stimulate economic recovery and Implementation of the Indonesia Payment System Blueprint 2025 ■Strengthening and expand digitalization through social programs, e-payment for Government ■Increasing the number of participants, expand services and garner greater acceptance of BI-FAST for more efficient transactions between banks and members of the public Monetary Policy Macro- prudential Policy Payment System ■ Expanding cross-border QRIS by, among others accelerating implementation, piloting local currency settlement (LCS) with other Asian countries and organising National CRIS Week to achieve the target of 15 million new users Policy ■Money market deepening by expanding underlying DNDF to boost liquidity and reinforce JISDOR as a reference for the exchange rate in the FX market Accelerate key infrastructure development including Electronic Trading Platforms (ETP) and a Central Counterparty (CCP) 2 3 4 ■Continue to develop the Money Market Development Blueprint 2025 ■Promote inclusiveness and the green economy in finance ■Controlling inflation through Inflation Control Team in national and regional level, and accelerating implementation of the National Movement for Food Inflation Control (GNPIP) ■Supporting the State Budget through SBN purchases in the primary market while maintaining macroeconomic stability ■Supporting the national economic recovery program through cooperation and collaboration with the MOF ■■■Strengthening the coordination with the Govemment and related authorities to revive bank Intermediation function ■ Strengthening policy coordination with the Government and Financial System Stability Committee to maintain macroeconomic and financial system stability Financial Market Deepening LA 5 Coordination with other Authorities

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