Bank Indonesia Policy Mix

Manageable Credit Risks with Adequate Liquidity 170 28 Financial institutions are equipped with ample liquidity while credit risks are maintained at a low level and remain below the threshold... % Liquid Assets to Non-Core Deposits and Liquid Assets to Deposits remain well-above the thresholds, following banks' cautious appetite for lending. *) Liquid Assets to Non-Core Deposits General Insurance Investment Adequacy Ratio improved while Life Insurance Investment Adequacy Ratio was steadily above the threshold. % 240 Life Insurance General Insurance 160 Liquid Assets to Deposits (rhs) 149.72 220 203.3 35 150 200 140 30 180 130 32.67 160 120 25 140 110 111.8 20 120 100 90 100 80 threshold LA to Deposit (rhs) = 10% 15 80 threshold Investment Adequacy Ratio= 100% 70 10 60 60 threshold LA NCD= 50% 40 5 50 20 40 0 0 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Banking NPL ratios slightly moderated and remained below the threshold at 3.35% gross and 1.08% net as of August 2021. 5 % 4 3 2 1 NPL Net Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 וט % Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 NPF of multi-finance companies remained below the 5% threshold and stood at 3.9% as of August 2021, lower than the previous month. *) NPL Gross 5 3.9 3.35 4 3 1.08 2 1 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 0 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Aug-21 156 Source: Financial Service Authority (OJK) *) provisional figures due to the relaxation on financial institutions' report to OJK because of Covid-19

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