Investor Presentaiton

Bank Indonesia's Policy Mix Direction in 2023 Maintaining Stability, Accelerating Economic Recovery B BANK INDONESIA BANK SENTRAL REPUBLIK INDONESIA Monetary policy towards maintaining stability ⚫ Policy rate increase as a follow-up step to ensure continued lower expected inflation and inflation in a front-loaded, pre-emptive, and forward- looking measure to maintain core inflation within the range of 3.0±1% • Strengthening rupiah stabilization policy as part of measures to control inflation, primarily imported inflation Issuing new foreign exchange monetary operation instruments to boost placement of Export Proceeds, domestically by banks and exporters to strengthen stabilization, including Rupiah exchange rate stability and national economic recovery Continue buying/selling SBN in the secondary market to strengthen transmission of the BI7DRR by increasing the attractiveness of SBN yields for foreign portfolio investment inflows to strengthen exchange rate stabilization measures ■ 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 MSME's contribution to the national economic recovery Accommodative macroprudential policy stance, among others by: relaxing LTV/FTV, relaxing down payment requirement, CCB 0%, 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 payment system digitalization to stimulate economic recovery and implementation of the Indonesia Payment System Blueprint 2025 Strengthen and expand digitalization through social programs, e-payment for Government Increase the number of participants, expand services and garner greater acceptance of BI-FAST for more efficient transactions between banks and members of the public Expanding cross-border QRIS by, among others, accelerating implementation, piloting local currency settlement (LCS) with other Asian countries and organising National QRIS Week to achieve the target of 15 million new users 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) 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) Source: Bank Indonesia Support the national economic recovery program through cooperation and collaboration with the MOF Strengthening the coordination with the Government 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 3 5 104

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