Investor Presentaiton

Adjustment of LTV Ratio for Property Loans, FTV Ratio for Property Financing, and Down Payments on Automotive Loans/Financing* BHINNE Bank Indonesia adjusts macroprudential policy in the property and automotive sectors by: (i) relaxing the LTV ratio for property loans and the FTV ratio for property financing; (ii) providing additional incentive on LTV ratio for green property loans and FTV ratio for green property financing; (iii) relaxing down payments on automotive loans/financing; (iv) providing additional incentive on down payments on green automotive loans. Policy Backgrounds In response to global and domestic economic developments, BI is maintaining an accommodative policy mix to maintain the economic growth while also maintaining macroeconomic and financial system stability. This effort will be targeted to several potential sectors. Considering the ongoing needs to stimulate the property and automotive sectors which have a huge backward and forward linkages to other sectors in the economy, BI decides to relax LTV/FTV policy for property loans/financing and down payments on automotive loans in compliance with prudential principles. Additional incentives are also given to support sustainable development through green financing in order to reduce potential disruptions to financial system stability stemming from environmental degradation. low As a prudential mitigation, those relaxations will be given to borrower with strong repayment capacity and credit/financing risk. BI will regularly evaluate this policy at least once a year. Main Regulatory Points 1. Adjustment of LTV Ratio for Property Loans and FTV Ratio for Property Financing. a. BI decides to relax the LTV ratio for property loans and FTV ratio for property financing by 5% from current ratio as follows: Landed House Type >70 Type >21-70 Type $21 Table 1. Current LTV/FTV Ratio Meets NPL/NPF Criteria Property Loan & Property Financing based on Akad Murabahah & Akad 1 Istishna 80% 85% Apartment Type >70 80% Type 21-70 85% Type 521 85% Office House 85% Type >70 Property Financing based on akad MMQ & akad IMBT 1 Does Not Meet NPL/NPF Criteria Property Financing Property Financing based on akad MMQ & akad IMBT based on Akad Murabahah & Akad Istichna 22 1 2 33 1 2 23 65% 90% 80% 70% 80% 60% 70% 85% 75% 80% 65% 70% 85% BOX 70% 60% 85% 75% 65% 85% 9056 8096 70% 90% 8096 7076 85% 80% 7006 80% 70% 85% 80% 7016 80% 70% Table 2. Adjusted LTV/FTV Ratio Meets NPL/NPI Criteria Property Loan & Property Property Financing Does Not Meet NPL/NPF Criteria Property Financing Financing based on Akad based on akad Murabahah & Akad based on Akad Murabshah & Akad based on akad MMO MMQ & akad IMBT Istishna letichna 프고 22 1 85% 90% 1 Property Financing & akad IMBT 23 1 고 23 90% 85% 95% 75% 95% 65% 75% 90% 80% 70% 85% 75% Landed House Type >21-70 Type 21 Apartment Type 70 85% 90% 8.5% 7.5% 65% 90% 80% 70% Type >21-70 90% 90% 95% 85% 75% 95% 85% 75% Type s21 90% 90% 8596 75% 85% 75% Office House 90% 90% 85% 75% - 85% 75% . *This adjustment will be effective from December 2nd, 2019 Source: Bank Indonesia 119

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