Investor Presentaiton

Liquidity Normalization Policy Without Disrupting Banking Liquidity Condition Bank Indonesia continues to normalize liquidity policy by raising Rupiah reserve requirements (RR) gradually and maintaining the RR incentive without disrupting liquidity conditions or the intermediation function of the banking industry. • • • Liquidity normalisation policy by raising Rupiah reserve requirements (RR) and maintaining the RR incentive from 1st March to 15th September 2022 has absorbed Rp269.3 trillion of liquidity in the banking industry without disrupting the intermediation function or participation in SBN purchases. In August 2022, the ratio of liquid assets to third-party funds remained high at 26.52%. Liquidity in the economy remained loose, as reflected in the narrow (M1) and broad (M2) money supply, which grew by 13.7% (yoy) and 9.5% (yoy), respectively. Meanwhile, implementing the Joint Decree of the Minister of Finance and Governor of Bank Indonesia, Bank Indonesia continues to purchase SBN in the primary market, totaling Rp102.3 trillion as of 20th September 2022. The implementation of operation twist has successfully raised the yields of short SBN tenors, while maintaining longer term yields. On 20th September 2022, the IndONIA rate had increased 58bps compared with the level recorded at the end of July 2022, thus reaching 3.38%. Principles for Long Term Government Bond Purchasing by Bank Indonesia in the Primary Market SBN Purchases by Bank Indonesia for State Budget Financing Source: Bank Indonesia Market Mechanism Prudent Maintaining the Credibility of Monetary Policy and Maintaining Economic Stability Tradable & Marketable Measured Last Resort Tradable SUN SBSN Considering the Impact on Inflation standby buyer for Non-Public Goods GOVERN Uphold Good Governance SUSTAINABLE 358.32 102.30 Trillion IDR 400 350 -2021 2022* 300 250 200 150 100 50 0 Purchase of SBN for State Budget Funding & Healthcare and Humanitarian Financing Source: Bank Indonesia. * Data as of 20 September 2022 98

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