Bank Indonesia Policy Mix

Indonesia Quick and Responsive Policy During COVID-19 Pandemic Flexible fiscal policy to support pandemic handling and recovery to pave way toward economic transformation Responsive Fiscal Policy 2020 EXTRAORDINARY POLICY Immediate response to Covid-19: Protecting People, and Business 2020 President President 2021 PANDEMIC HANDLING & RECOVERY POLICY Vaccination and health measures, Social Protection, Fiscal Stimulus support Economy Fiscal Deficit Dynamic For COVID-19 handling and economic recovery 2021 Note of KEM-PPKF* KEM Proposed PPKF Budget APBN Outlook 2022 RECOVERY & REFORM Stronger Recovery, Accelerating growth, and Reform Implementation RAPBN 2022 2023 FISCAL CONSOLIDATION FISCAL DISCIPLINE TOWARDS LONG TERM SUSTAINABLE BUDGET • Deficit 3% of GDP in 2023; APBN -1,76 Regulation Regulation No.54 No.72 Realization ! II -5,07 -6,34 -6,14 STRONG AND CONTINOUS ECONOMIC RECOVERY Source: Ministry of Finance -3,21 -4,17 -4.7 -5.5 -5.7 -5.8 EFFECTIVE COVID-19 PANDEMIC HANDLING • Mass Vaccination 5M Internalization • 3T Implementation 4,85% ECONOMIC JUMP START • Tax Incentives Financing and Guarantee Program Integrated Policy Packaged from Financial Sector Stability Committee Manageable debt risk • • STRUCTURAL REFORM Omnibus law on job creation (including INA, OSS) Fiscal Reform Financial Sector Reform 62 62

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