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Investor Presentaiton

Bank Indonesia Policy Mix: JULY 2023 Maintaining Stability and Reviving Growth BB BANK INDONESIA BANK SENTRAL REPUBLIK INDONESIA The BI Board of Governors agreed on 24th and 25th July 2023 to hold the BI 7-Day Reverse Repo Rate (BI7DRR) at 5.75%, while also maintaining the Deposit Facility (DF) rate at 5.00% and Lending Facility (LF) rate at 6.50%. % Hold the BI 7-Day Reverse Repo Rate at 5.75% Issuing regulations concerning instruments to repatriate the foreign exchange proceeds of natural resources exports into the Indonesian financial system based on three governing principles, : (i) compliance with the provisions contained in Government Regulation No. 36 of 2023, (ii) leveraging the foreign exchange proceeds of natural resources exports for domestic purposes, (iii) the in types of instruments permitted remain compliance with principles and (ii), as well as in accordance with economic and financial developments. Source: Bank Indonesia market Rp Strengthening rupiah stabilisation policy through: (i) foreign exchange market intervention, including spot and Domestic Non-Deliverable Forward (DNDF) transactions, as well as buying/selling government securities (SBN) in the secondary market, and (ii) the twist operation by selling short-term SBN in the secondary market to increase the attractiveness of SBN yields for foreign portfolio investment inflows. Continuing prime lending rate (PLR) transparency policy with a focus on interest rates in downstream sectors Strengthening macroprudential policy stimuli to revive bank lending through implementation of Macroprudential Liquidity Incentive Policy (KLM) for Conventional Commercial Banks and Sharia Banks/Business Units, effective from 1st October 2023, as follows: Honing the liquidity incentives for banks disbursing loans/financing to downstream mineral and coal mining sectors and downstream non, and ultra-micro enterprises) as well as the green economy and finance. Increasing the total incentive up to a maximum of 4% from 2.8% previously, Implementing Macroprudential Liquidity Incentive Policy by reducing the reserve balances held at Bank Indonesia required to meet average rupiah reserve requirements Honing the payment system digitalisation strategy to expand digital economic and financial inclusion by: . Strengthening the QRIS Merchant Discount Rate (MDR) for the micro-enterprise segment based on value per transaction progressively as follows: (a) transactions up to Rp100,000 (one hundred thousand rupiah) subject to 0% MDR, and (b) transactions exceeding Rp100,000 (one hundred thousand rupiah) subject to 0.3% MDR, effective based on industry system readiness from 1st September and 30th November 2023 at the latest. Accelerating QRIS by expanding the innovative features of QRIS Tuntas (cash withdrawals and deposits) as well as expanding cross-border QRIS payments. Hosting National QRIS Week and the Indonesia Sovereign Rupiah Festival to celebrate RI Independence Day. 106
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