BRI Performance Highlights and Green Initiatives slide image

BRI Performance Highlights and Green Initiatives

MACRO FUNDAMENTALS Prudent Macroeconomic Policy, Strong Terms of Trade Support Key Macro Indicators BRI Trade Balance (USD Mn) Budget Deficit (% of GDP) 7,565 (78) AN Dec-19 Dec-20 Dec-21 "High commodity prices & commodity down streaming resulted in sustained trade balance surplus" USD/IDR & Foreign Reserves 3,890 -2.20% Q -4.57% -6.14% -2.38%* Threshold (-3%) Dec-22 2019 2020 *2022 Budget deficit realization data as of Jan'23 2021 2022 15,573 137.2 "Strong government earnings & prudent fiscal management led Indonesia to maintain its budget deficit under 3% threshold in 2022, ahead of the end of the relaxation in 2023" Foreign Flow to Government Bonds +IDR 48.6 Tn* B Supportive Policies for Economic Growth & Stability Pro-Stability Monetary Policy Mandatory use of rupiah within the territory of BANK INDONESIA Republic of Indonesia OKERITAS KEUANGAN Underlying document transaction requirement for forex ■ Hedging requirement for non-bank corporation Triple Intervention policy (Spot transaction, DNDF transaction and Purchase of Govt Securities in secondary market) for exchange rate stability Implementing forex monetary operations (MO) in the form of foreign currency term deposits (TD) as an instrument for exporters to place foreign exchange proceeds of exports through banks to Bank Indonesia Pro-Growth Macroprudential Policy ■ More comprehensive RRR policy with additional incentives for banks who serve prioritized sectors, MSMEs & green financing ■ Digital-based payment system policy Extending Covid-19 restructuring relaxation for several economic sector & provinces until March 2024 13,866 129.2 Dec-19 USD/IDR (LHS) Foreign Reserve (USD Bio, RHS) Dec-20 Dec-21 Dec-22 "Ample foreign reserves to maintain stable exchange rate" Source: Bloomberg, Bank Indonesia, BPS, Ministry of Finance Dec-21 Mar-22 *YtD as of 1st of Feb'23 Jun-22 (IDR 106.9 Tn) Sep-22 Dec-22 "Indonesia started to experience positive foreign flows to government bonds since Q4'22, signaling confidence in the economy" Transforming the economy by increasing commodity value through downstreaming natural resources ■ Economic reopening by ending social activities restriction (PPKM) ■ Tax Regulation Harmonization (UU HPP) 7
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