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Investor Presentaiton

Bank Indonesia's Measures to Mitigate Covid-19 Risk To maintain Monetary and Financial Market Stability 1 Measures Launched on March 2, 2020 Strengthening the intensity of triple intervention policy to maintain rupiah exchange rate stability in line with the currency's fundamental value and market mechanisms Reducing the foreign currency reserve requirement ratio for 2 conventional commercial banks from 8% to 4%, effective 16th March 2020. Reducing the rupiah reserve requirement ratio by 50bps for 3 banks engaged in export-import financing activity in coordination with the Government. Expanding the types of underlying transactions available to 4 foreign investors as hedging alternatives against rupiah holdings in Indonesia. 1 2 Measures Launched on March 18-19, 2020 Strengthening the intensity of triple intervention policy to maintain rupiah exchange rate stability in line with the currency's fundamental value and market mechanisms. Extending the SBN repo tenor to 12 months and providing daily auctions to loosen rupiah liquidity in the banking industry. Increasing the frequency of FX swap auctions for 1, 3, 6 and 12- 3 month tenors from three times per week to daily auctions in order to ensure adequate liquidity. 4 Strengthening foreign currency term deposit instruments in order to enhance foreign currency liquidity management in the domestic market. Expediting the enforcement of domestic vostro rupiah accounts 5 for foreign investors as underlying transactions for Domestic NDF, thus increasing hedging alternatives against rupiah holdings. 6 Expanding the incentive of a 50bps looser daily rupiah reserve requirement beyond banks that are engaged in export-import financing to include the financing of MSMEs and other priority sectors. 5 Global investors may utilise global and domestic custodian banks for investment activity in Indonesia. 7 Source: Bank Indonesia Strengthening payment system policy to support COVID-19 mitigation efforts. 7
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