Directorate of Government Debt Securities Directorate General of Budget Financing and Risk Management Ministry of Finance of The Republic of Indonesia

Government Securities Management December 28, 2015

OUTLINE

1. Government Securities Management and Financing Strategy

2. Government Securities Performance

3. Crisis Management Protocol & Bond Stabilization Framework

4. Debt Outstanding & Risk Profile

2

DISCLAIMER: This presentation does not constitute or form part of and should not be construed as an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Republic in any jurisdiction or as an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This presentation is not and should not be construed as financial, legal, tax, investment or other product advice.

Government Securities Management and

Financing Strategy

General Strategy for Debt Financing 2015

1. Optimizes Governments securities (SBN) issuance from domestic sources to fulfill Budget need and uses

foreign debts as complimentary;

2. Debt instruments take into account of market need:

in regard to market development and portfolio management;

3. Issues Retail Bond for instrument diversification and financial inclusion;

4. Optimizes foreign and domestic loan instrument to fulfill Budget need on capital expenditure;

5. Conducts active portfolio management of Government securities through, among others, debt buyback

and debt switch, in order to promote market liquidity and stability;

6. Strengthens the function of Investor Relations Unit, among others, through the proactive dissemination of

information, rapid and effective responses, and effective communication with investors and other stakeholders.

4

Financing Trend, 2004 2015

(trillion IDR)

Notes: * Preliminary 2014 ** Revised Budget 2015

5

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* 2015**

Govt Securities - net 6.9 22.6 36.0 57.2 85.9 99.5 91.1 119.9 159.7 224.7 265.0 297.7

Domestic Loan - - - - - 0.4 0.6 0.8 0.4 0.5 1.7

External Loan - net (28.1) (10.3) (26.6) (26.6) (18.4) (12.4) (4.6) (17.8) (23.5) (5.8) (15.4) (20.0)

Others/Non-Debt - net 42.0 (1.2) 20.0 9.1 16.6 25.5 4.6 28.3 38.1 18.1 (12.2) (65.5)

Budget Defisit, % to GDP 1.1 0.5 0.9 1.3 0.1 1.6 0.7 1.1 1.9 2.3 2.2 1.9

1.1

0.5

0.9

1.3

0.1

1.6

0.7

1.1

1.9

2.3 2.2

1.9

(0.5)

-

0.5

1.0

1.5

2.0

2.5

-100

-50

0

50

100

150

200

250

300

Government Budget FY 2015

6

In billion IDR

Financing sources

Revised Budget 2015

come from debt

financing (85 .78 %

from Government

Securities, 9.62 %

from Loan) and the

rest 4.61 % from non

debt financing .

Stand -by loans are in

place to anticipate

adverse situations .

A. Total Revenue 1,793,588.9 16.1 1,761,642.8 15.1

B. Total Expenditure 2,039,483.6 18.3 1,984,149.7 17.0

Interest Payment 151,968.3 1.4 155,730.9 1.3

C. Primary Balance (93,926.4) (0.8) (66,776.0) (0.6)

D. Deficit (245,894.7) (2.2) (222,506.9) (1.9)

E. Financing 245,894.7 2.2 222,506.9 1.9

I. Non Debt (8,961.2) (0.1) (56,874.0) (0.5)

II. Debt 254,855.9 2.3 279,380.9 2.4

1. Government Securities (Net) 277,049.8 2.5 297,698.4 2.5

2. Loan (Net) (22,193.9) (0.2) (18,317.5) (0.2)

i. Foreign Loan (Net) (23,815.1) (0.2) (20,008.1) (0.2)

Disbursement 47,037.1 0.4 48,647.0 0.4

- Program Loan 7,140.0 0.1 7,500.0 0.1

- Project Loan 39,897.1 0.4 41,147.0 0.4

On Lending (4,319.4) (0.0) (4,471.9) (0.0)

Foreign Loan Principal Payment (66,532.8) (0.6) (64,183.2) (0.5)

ii. Domestic Loan (Net) 1,621.2 0.0 1,690.6 0.0

Disbursement 2,000.0 0.0 2,000.0 0.0

Domestic Loan Principal Payment (378.8) (0.0) (309.4) (0.0)

Assumptions :

GDP (trillion IDR) (Y.o.Y) 11,146,943.0 11,700,808.0

Growth (%) 5.8 5.7

Inflation (%) y-o-y 4.4 5.0

3-month-SPN (%) 6.0 6.2

IDR/USD (average) 11,900 12,500

% to

GDPBudget

% to

GDP

Revised

Budget

2015

Description

Government Securities Financing (Gross) 2015

7

(in billion Rp)

Original

1.9%2.23% 2.59%

Revenue 1,761.6 1,649.7 1,561.9

Expenditure 1,984.1 1,909.7 1,860.4

Surplus/(Defisit) (222.5) (260.0) (298.5)

Additional Financing 37.5 76.0

Cash Financing 459.7 497.2 535.6

Government Securities (gross) 452.2 461.7 481.2

Domestic 339.3 348.8 361.4

Government Debt Securities 261.3 263.9 276.6

Sukuk 78.0 84.9 84.9

Global Bond 112.9 113.0 119.7

Government Debt Securities 86.5 86.6 93.3

Sukuk 26.4 26.4 26.4

External Loan 7.5 35.5 54.5

Budget Deficit Domestic: Auction:

conventional securities: 23 x

Islamic securities: 22 x

Non-Auction:

retail bonds: ORI + Sukuk Retail.

International Bonds:

Issuance of International Bonds as

complement to avoid crowding out in

domestic market and provide benchmark for

corporate issuance, consist of USD, YEN or

EURO global bonds

Maximum issuance international bond 30%

from target gross

Issuance targets for GDS, Sukuk and

ATM target:

GDS (SUN): 75.9%

Sukuk: 24.1%

ATM for GS (SBN): 8.4 year

Securities Financing Realization 2015

* Under scenario Deficit 2.78% of GDP

8

ExplanationRevised Budget

2015*

Realization

(a.o.Dec 4, 2015)*

% Realization to

Revised Budget

2015

Government Securities Net 349,944,127 349,944,128 100.00%

Government Securities Maturing in 2015 and Buyback 152,418,614 152,418,614 100.00%

Issuance Need 2015 * 502,362,741 502,362,741 100.00%

Government Debt Securities (GDS) 384,401,563

Domestic GDS 297,832,874

-Coupon GDS 202,110,000

-Conventional T-Bills 52,200,000

-Private Placement 16,084,119

-Retail Bonds 27,438,755

International Bonds 86,568,689

-USD GMTN 50,372,939

-Euro GMTN 18,473,050

-Samurai Bonds 11,054,200

-Domestic GDS 6,668,500

Government Islamic Debt Securities 117,961,178

Domestic Government Islamic Debt Securities 91,539,178

- IFR/PBS/T-Bills Sukuk (Islamic Fixed Rated Bond/Project Based

Sukuk) 59,990,000

- Retail Sukuk 21,965,035

- Private Placement 9,584,143

Global Sukuk 26,422,000

GOVERNMENT SECURITIES FINANCING

STRATEGY 2016

GENERAL DEBT FINANCING STRATEGY 2016

DEBT POLICY IN 2016 BUDGET

1. Manageable Debt-to-GDP

ratio 2. Financial inclusion &

market deepening

3. Debt issuance for productive

activity 4. Selective external loan

(infrastructure and energy

sector)

5. Loan as an alternative

instrument for financing

6. Active debt management

and ALM

10

Description 2016 BudgetA. Total Revenue 1,822.5

I. Domestic Revenue 1,820.5

1. Taxation 1,546.7

2. Non-Taxation 273.8

II. Grant 2.0

B. Government Spending 2,095.7

I. Central Government Spending 1,325.6

1. Ministerial Spending 784.1

2. Non-Ministerial Spending 541.4

II. Fund Transfer and Village Fund 770.2

C. Primary Balance (88.2)

D. Deficit (273.2)

Deficit to GDP (2.1%)

E. Financing 273.2

I. Domestic 272.8

a. Domestic Banks 5.5

b. Domestic Non-Banks 267.3

1. Government Securities (net) 327.2

2. Capital Injection (48.4)

II. Foreign 0.4

Surplus (Deficit) Funding

GOVERNMENT BUDGET FOR 2016

In IDR Trillion, where applicable

11

GOVERNMENT SECURITIES INDICATIVE FINANCING

PLAN FOR 2016

Domestic Bonds

International Bonds Issuance (USD, EUR, JPY-denominated)

Weekly Auction:

Conventional securities:

23 x

Islamic securities: 23 x

Non-Auction:

Retail bonds: SR (Q1), SBR (Q2), Sukuk Tabungan

(Q3), and ORI (Q4)

Private Placement Based on request

Issuance of International Bonds as complement to avoid crowding out in domestic market and provide benchmark for corporate issuance, consists of USD, YEN or EURO global bonds

Maximum issuance international bond 30% from target gross

Issuance targets for GDS, Sukuk and ATM target

Government Debt Securities (SUN): 76 %; Sukuk: 24% ATM for Goverrnment Securities (SBN) by auction: 10-12 year.

Instruments Indicative Target (IDR tn)

Preliminary Budget

Government Securities (Net) 327,224

Redemption 187,202

Cash Management 15,000

Buyback 3,000

Government Securities (Gross) 532,426

Composition

Domestic 76%

Auction 66%

Non-Auction 10%

International Bond 24%

12

Government Securities Performance

-10%

0%

10%

20%

30%

40%

50%

60%

-

20,000

40,000

60,000

80,000

100,000

120,000

Incoming Bids Awarded Bids Foreign Incoming Bids

Foreign Awarded Bids % Foreign Incoming Bids (RHS)

14 14

Average Foreign incoming bids 2015 is Rp6.87T, compare to period in 2014, which reached 7.58T

Average incoming bids 2015 = Rp20.84T, decrease from average incoming bids 2014 = Rp22.65T

Average awarded bid 2015 = Rp10.59T while average awarded bid 2014 = Rp10.97 T.

Average incoming bids

2014 = Rp22,65T/auction

Average awarded bids

2014 = Rp10,97T/auction

GDS Primary Market Performance 2015

*as of Dec 1, 2015

0%

10%

20%

30%

40%

50%

60%

-

20,000

40,000

60,000

80,000

100,000

120,000

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 1-Des-15

Incoming Bids Awarded Bids Foreign Incoming Bids Foreign Awarded Bids % Foreign Incoming Bids (RHS)

15 15

Average Foreign incoming bids 2015 is Rp4.65T

Average incoming bids 2015 = Rp14.05T, average incoming bids 2014 = Rp14.02T

Average awarded bid 2015 = Rp6.75T, while average awarded bid 2014 = Rp6.52T.

Avr . Awarded bids

2014 = 6,52T

Avr . Incoming Bid 2014: 14,02T

Avr . Foreign Incoming Bid 2014:

4,42T

GS Primary Market Performance 2015

*as of Dec 1, 2015

Primary Market Performance 2015: Global Bonds

RI0125 RI0145 SNI-25 RIEUR0725

Summary Terms of Offering

Issuer

Issuer RatingsBBB- Stable (Fitch)

Issue Ratings Baa3 (Moody's) / BB+ (S&P) / BBB- (Fitch)

Issue USD fixed rate EUR fixed rate

Size USD2 billion USD2 billion USD2 billion EUR1,250 billion

Pricing / Settlement Date 8 January / 15 January 2015 8 January / 15 January 2015 21 May / 28 May 2015 23 July / 31 July 2015

Maturity 10 years due 15 January 2025 30 years due 15 January 2045 10 years due 28 May 2025 30 July 2025

Coupon 4.125% payable semi annually 5.125% payable semi annually 4.325% payable semi annualy 3,375% payable semi annually

Reoffer Yield / Price 4.200% / 99.393% 5.200% / 98.867% 4.325% / 100% 3,555% / 98,507%

Format Rule 144A / Reg S Rule 144A / Reg S Reg-S/144 A Rule 144A / Reg S

Listing SGX-ST SGX-ST SGX-ST & Nasdaq Dubai SGX-ST, Frankfurt Open Market

Total Book Order USD10.05 billion USD9.23 billion USD6.8 billion EUR2,4 billion

DistributionIndonesia 13%, Asia 15%,

Europe 24%, USA 48%

Indonesia 4%, Asia 20%, Europe

23%, USA 53%

Indonesia 10%, Asia 12%, Europe 16%, USA

21%, Islamic & Middle East investor 41%Indonesia 7%, Asia 13%, Europe 43%, USA 37%

Investor Type

Fund / Asset Managers 73%,

Banks 14%, Insurance /

Pension Funds 9%, Private

Banks 2%, SWF 2%

Fund / Asset Managers 75%,

Banks 8%, Insurance / Pension

Funds 13%, Private Banks 2%,

SWF 2%

Fund / Asset Managers 39%, Banks 42%,

Central Bank 15%, Inssurance Companies 2%,

Private Bank 2%

Fund / Asset Managers 66%, Banks/Private Banks 16%,

Insurance / Pension Funds 9%, Central Banks/Sovereigen

Funds 9%

USD fixed rate

Republic of Indonesia

16

Primary Market Performance 2015: Samurai Bonds

17

Summary Terms of Offering RIJPY0818 RIJPY0820 RIJPY0825

Issuer

Issue Ratings BBB- (JCRA), BBB- (R&I), Baa3 (Moody), BBB- (Fitch) BBB- (JCRA), BBB- (R&I), Baa3 (Moody), BBB- (Fitch)

Issue JPY fixed rate JPY fixed rate JPY fixed rate

Size JPY22,5 bilion JPY22,5 bilion JPY55 billion

Pricing / Settlement Date 04 August/ 13 August 2015 04 August/ 13 August 2015 04 August/ 13 August 2015

Maturity 13 August 2018 13 August 2020 13 August 2025

Coupon 1,08% 1,38% 0,91%

Price 100% 100% 100%

Spread Over Yen Swap Other Side 87 bps over JP 3yr Swap 108 bps over JP 5yr Swap 27 bps over JP 10yr Swap

Yen Swap Rate 0,21% 0,30% 0,64%

Total Book Order JPY 22,5 billion JPY 22,5 billion JPY82,9 billion

Distribution Asia 100% Asia 100% Asia 100%

Investor Type

City Bank 65.5%, Specialized Banks 5.8%, Public Funds 0.9%,

Life Insurance 8.7%, Property Insurance 1.8%, Regional Banks

4.2%, Shinkins 12.2%, Others 0.9%

Republic of Indonesia

City Bank 17.8%, Trust Banks 1.3%, Public Funds 29.1%, Life Insurance 3.3%, Regional Banks 7.1%, Shinkins 0.2%, Others

41.2%

4.39 5.88 5.73 5.31

7.91 10.91 11.11 9.18 6.39 9.37 12.33 8.21 10.90 8.89 7.52 9.07 7.90

0.22

0.16 0.38 0.41

0.76

1.14 0.81

0.77

0.62

0.50

0.53

0.83

0.77

0.72 0.52

0.68 0.80

0.34

1.54 3.07

6.30

8.80

7.45 7.19

4.84

4.65

3.39

6.48 10.94

12.57

12.87

17.69 15.61

20.32

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

OUTRIGHT REPO BANK REPO BI

0

5

10

15

20

25

30

35

40Spread (bid-ask)

As of December 8, 2015 [In Percentage]

Activities of the domestic bonds are growing Yield s of Benchmark Series steadily decrease

Bid Ask Spread 10 Y Government Bond Turn Over 10 Y Government Bond

As of December 8, 2015

As of December 22, 2015

Secondary Market Performance

18

5.12

7.04

5.15

14.12 12.88

10.75 10.53

-

3.00

6.00

9.00

12.00

15.00

2008 2009 2010 2011 2012 2013 2014

Spread 8.528 bps

(ask 8.48 bid

8.576)

2468

10121416182022

Des'0

8

Apr'0

9

Ag

ust'0

9

Des'0

9

Apr'1

0

Ag

ust'1

0

Des'1

0

Apr'1

1

Ag

ust'1

1

Des'1

1

Apr'1

2

Ag

ust'1

2

Des'1

2

Apr'1

3

Ag

ust'1

3

Des'1

3

Apr'1

4

Ag

ust'1

4

Des'1

4

Apr'1

5

Ag

ust'1

5

Des'1

5

5Y 10Y 15Y 20Y

8.49 (5Y), 8.52 (10Y), 8.66 (15Y), 8.8 (20Y)

Market Watch as of December 29, 2015

Source: Asian Bonds Online

Yield GS

19

Source: IDMA, Bloomberg, as of December 28, 2015

LCY 10 Year

Government

Bonds

Latest Yield YTD Change (BP)

MTD

Change

(BP)

HK 1.540 -35.6 -2.5

ID 8.754 +95.8 +14.3

JP 0.267 -6.2 -4.0

KR 2.097 -50.8 -15.0

MY 4.234 +8.7 +3.5

PH 4.099 +23.5 +2.9

SG 2.410 +12.9 -10.2

TH 2.516 -21.3 -21.1

US 2.230 +5.9 +2.4

VN 7.200 -3.0 -0.8 -

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

22.0

1Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y 15Y 20Y 30Y

28 Dec '15 21 Dec '15

27 Nov '15 9 Feb '12

23 Sep '11 27 Oct '08

13 Sep'05

[in percentage]

Tenor 28-Dec-15 21-Dec-15 27-Nov-15 9-Feb-12 23-Sep-11 27-Oct-08 13 Sep'05

1Y 7.27 7.48 7.06 3.30 5.29 19.37

2Y 8.35 8.42 7.94 4.21 6.01 17.35 14.59

3Y 8.64 8.61 8.34 4.33 6.13 19.93

4Y 8.68 8.64 8.35 4.39 6.54 17.17 14.14

5Y 8.75 8.69 8.52 4.44 6.69 17.46 14.96

6Y 8.78 8.75 8.59 4.79 6.81 17.05 15.24

7Y 8.79 8.76 8.59 4.88 7.08 17.06 16.17

10Y 8.89 8.86 8.73 5.02 7.43 20.91 15.75

15Y 9.03 8.95 8.83 5.47 7.83 16.65 14.12

20Y 9.01 9.00 8.79 5.96 8.20 20.27

30Y 9.27 9.35 9.14 6.17 8.29 20.37

Ownership of Tradable Domestic Government

Securities

20

(in trillion Rp)

`

Banks 217,27 33,88% 265,03 36,63% 299,66 36,73% 335,43 33,70% 375,55 31,04% 372,66 29,95% 369,11 27,21% 413,99 28,79% 371,50 25,56%

Govt Institutions (Bank Indonesia*) 17,42 2,72% 7,84 1,08% 3,07 0,37% 44,44 4,47% 41,63 3,44% 38,37 3,08% 80,58 5,94% 67,09 4,67% 128,77 8,86%

Non-Banks 406,53 63,40% 450,75 62,29% 517,53 63,09% 615,38 61,83% 792,78 65,52% 833,42 66,97% 906,74 66,85% 956,85 66,54% 953,15 65,58%

Mutual Funds 51,16 7,98% 47,22 6,53% 43,19 5,27% 42,50 4,27% 45,79 3,78% 47,16 3,79% 56,28 4,15% 59,47 4,14% 60,79 4,18%

Insurance Company 79,30 12,37% 93,09 12,86% 83,42 10,17% 129,55 13,02% 150,60 12,45% 149,95 12,05% 161,81 11,93% 170,86 11,88% 171,98 11,83%

Foreign Holders 195,76 30,53% 222,86 30,80% 270,52 32,98% 323,83 32,54% 461,35 38,13% 500,83 40,25% 537,53 39,63% 548,52 38,15% 550,72 37,89%

Foreign Govt's&Central Banks** 50,06 6,10% 78,39 7,88% 103,42 8,55% 104,66 8,41% 102,34 7,54% 109,49 7,61% 110,32 7,59%

Pension Fund 36,75 5,73% 34,39 4,75% 56,46 6,88% 39,47 3,97% 43,30 3,58% 43,00 3,46% 46,32 3,42% 48,69 3,39% 49,56 3,41%

Securities Company 0,13 0,02% 0,14 0,02% 0,30 0,04% 0,88 0,09% 0,81 0,07% 0,65 0,05% 0,74 0,05% 0,15 0,01% 0,02 0,00%

Individual 32,48 3,26% 30,41 2,51% 28,35 2,28% 32,23 2,38% 52,40 3,64% 43,04 2,96%

Others 43,43 6,77% 53,05 7,33% 63,64 7,76% 46,68 4,69% 60,51 5,00% 63,49 5,10% 71,82 5,29% 76,76 5,34% 77,05 5,30%

Total 641,21 100% 723,61 100% 820,27 100% 995,25 100% 1.209,96 100% 1.244,45 100% 1.356,43 100% 1.437,93 100% 1.453,43 100%

1) Including ownership of SBSN (government sukuk).

2) Foreign are consisted of Private Banking, Fund/Asset Management, Securities, Insurance, Pension Fund.

3) Others are consisted of Corporation, Individual, Foundation.

*) Since February 8th, 2008, repo transaction of Government Securities to Bank Indonesia was included.

**) Since November 21, 2014, foreign government(s) was included to the same category as foreign central bank(s).

Dec'28-2015Dec-13Dec-12Dec-10 Dec-11 Dec-14 Jan-15 Jun-15 Nov-15

Foreign Investor Activity (yearly)

21

Foreign Net Buy/Sell up to September (YTD) & yearly total (IDR) trillion)

Investors Net Buy/Sell (IDR trillion)

Source: Bank Indonesia

Foreign investors (Asing) recorded a net buy of IDR81.02 trillion (year to date). While during the year of 2014 foreign net buy reached IDR137.52 trillion. In October 2015 foreign investor recorded net buy of IDR67.41 trillion, thus during November 2015 (until 25th November), net buy reached IDR13.61 trillion.

Note: as of November 25, 2015

2011 2012 2013 2014 2015

Domestic 55.29 49.00 121.68 77.19 137.94

Foreign 27.10 47.67 53.31 137.52 81.02

Total 82.39 96.66 174.99 214.71 218.97

27.10

47.67

53.31

137.52

81.02

24.03

27.47

47.59

136.03

67.41

0 20 40 60 80 100 120 140 160

2011

2012

2013

2014

2015

Oktober YTD

Foreign Investor Activity

Net Buyer (Seller) - Non Resident Foreign Ownership - Proportion by Tenor [In IDR Trillion]

Foreign investors mostly dominated by high quality long term investors

22

As of December 28, 2015

5,20% 4,65% 5,38% 4,45% 3,33% 3,31% 3,85% 3,28%

5,41% 3,73% 2,89% 2,34%

1,54% 1,51% 1,54% 1,35%

12,88% 15,23% 12,92%

12,46% 11,43% 11,02%

12,30% 11,88%

32,04% 33,58% 34,88%

36,18%

39,69% 39,50% 36,98%

38,31%

44,46% 42,81% 43,94% 44,56% 44,00% 44,67% 45,33% 45,18%

32,54%

38,13% 38,61% 39,63%

37,59% 37,10% 38,15% 37,89%

0%

20%

40%

60%

80%

100%

Dec 13 Dec 14 Mar-15 Jun-15 Sep-15 Oct-15 Nov-15 28 Dec-15

0-1 -2 -5 -10 %Foreign Ownership of Total

8,44

(0,88)

17,97

4,22

(19,98)

2,81

(1,76)

10,13

23,98

6,08

(0,37)

4,82

16,49 15,77 16,10

20,15

6,43

14,67 15,95

13,17 12,49

21,34

(19,84)

39,48

6,84

(3,59)

4,10 6,31

23,04

(3,90)

(7,96)

(2,30)

5,39

8,38

13,57

-0,08

-0,06

-0,04

-0,02

0

0,02

0,04

0,06

0,08

0,1

(30,00)

(20,00)

(10,00)

0,00

10,00

20,00

30,00

40,00

50,00

Fe

b-1

3

Ap

r-1

3

Ju

n-1

3

Au

g-13

Oct-

13

Dec-1

3

Fe

b-1

4

Ap

r-1

4

Ju

n-1

4

Au

g-14

Oct-

14

Dec-1

4

Fe

b-1

5

Ap

r-1

5

Ju

n-1

5

Au

g-15

Oct-

15

28

De

c 1

5

Capital Inflows [LHS] capital inflows over foreign [RHS]

Crisis Management Protocol &

Bond Stabilization Framework

Pre-emptive Measures

Implementing Crisis Management Protocol

(CMP)

Implementing Bond Stabilization Framework

(BSF)

Enhancing coordination between government

institutions and continuous dialogue with market

participants

Specific policies in place to address crises

enacted in 2015 budget law

Swap facility arrangements based on international cooperation

Crisis Management Protocol

Indicators to determine crisis level of

Government Securities Market condition (normal,

aware, alert, crisis)

Several market indicators that are monitored

daily:

- Yield of benchmark series;

- Exchange rate;

- Jakarta Composite Index;

- Foreign ownership in government securities

Policies to address the crisis at every level :

- Repurchase the government securities at

secondary market

- Postpone or stop the issuance

First Line of Defense

Buyback fund at DG of Budget Financing

and Risk Management

Investment fund at Public Service Agency

(BLU) (min. level Aware)

State Owned Enterprises

Related BUMNs (min. level Aware)

Social Security Organizing

BPJS (min. level Aware)

Second Line of Defense

State General Treasury Account

(Rekening KUN) (min. level Alert)

Accumulated cash surplus (SAL) (min.

Level Crisis)

State Owned Enterprises

Related BUMNs (min. level Alert)

Social Security Organizing

BPJS (min. level Alert)

Bond Stabilization Framework

Implement Measures to Manage External Volatility

24

Debt Outstanding & Risk Profile

- 20 40 60 80

100 120 140 160 180 200 220 240

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

-206

0

Loan Gov't Sec

020406080

100120140160180200220240

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

-206

0

Domestic Foreign

Total Debt Maturity Profile as of End of November,

2015

26

Maturity Profile of Central Government by Instruments (in trillion IDR)

Maturity Profile of Central Government by Currencies (in trillion IDR)

44%56%

Foreign Domestic

76%

24%

Gov't Sec Loan

Notes: * Preliminary Figures

Outstanding Central Government Debt by Instrument

27

Nominal %

a. Foreign Loan (in billion USD) 68,6 68,4 63,6 58,4 53,9 53,6 24,1%

Bilateral 42,3 42,1 37,2 31,5 26,7 24,6 11,1%

Multilateral 23,2 23,5 23,8 23,7 23,5 25,5 11,5%

Commercial 3,0 2,8 2,5 3,3 3,7 3,5 1,6%

Suppliers 0,1 0,1 0,0 0,0 0,0 0,0 0,0%

b Domestic Loan (in billion USD) 0,0 0,1 0,19 0,2 0,2 0,3 0,1%

c. Government Securities (in billion USD) 118,4 131,0 140,8 136,3 155,2 168,3 75,7%

Foreign Currency Denominated 18,0 21,6 27,4 32,8 36,7 44,1 19,9%

Rupiah Denominated 100,4 109,4 113,4 103,5 118,5 124,1 55,9%

Total Central Government Debt

(in billion USD)187,0 199,5 194,9 209,4 222,2

Total Central Government Debt

(in trilion IDR)1.681,7 1.808,9 2.375,5 2.604,9 3.074,8

Exchange Rate Assumption (IDR/USD1) 8.991,0 9.068,0 12.189,0 12.440,0 13.840,0

GDP (in trillion IDR) 6.864,1 7.831,7 9.524,7 10.542,7

Debt to GDP Ratio 24,5% 23,1% 23,0% 24,9% 24,7%

8.615,7

9.670,0

1.977,7

Nov-15

204,5

2011 2012 2013 20142010Description

28 Notes: * Preliminary Figures

Outstanding Central Government Debt by Currency

2010 2011

Original Currency

IDR (in trillion) 902,6 993,0 1.098,0 1.263,9 1.477,5 1.722,1

Gov't Securities 902,4 992,0 1.096,2 1.261,7 1.474,6 1.718,2

Loan 0,2 1,0 1,8 2,2 2,9 3,9

USD (in billion) 39,6 43,9 49,8 56,8 61,0 69,1

Gov't Securities 16,9 20,4 25,6 31,3 34,2 39,7

Loan 22,8 23,5 24,2 25,4 26,8 29,4

JPY (in billion) 2.689,8 2.589,8 2.498,8 2.395,3 2.204,0 2.183,5

Gov't Securities 95,0 95,0 155,0 155,0 155,0 255,0

Loan 2.594,8 2.494,8 2.343,8 2.228,8 2.049,0 1.928,5

EUR (in billion) 5,4 5,0 4,5 4,2 5,1 6,1

Gov't Securities - - - - 1,0 2,3

Loan 5,4 5,0 4,5 4,2 4,1 3,9

Other currencies

Equivalent in Billion USD

IDR 100,4 109,5 113,5 103,7 118,8 124,4 56,0%

USD 39,8 43,9 49,8 56,8 61,0 69,1 31,1%

JPY 33,1 33,4 29,1 22,8 18,5 17,8 8,0%

EUR 7,2 6,4 6,0 5,8 6,2 6,5 2,9%

Other currencies 6,5 6,3 6,1 5,8 5,0 4,4 2,0%

Total Eq. in Billion USD 187,0 199,5 204,5 194,9 209,4 222,2

Equivalent in Trillion IDR

IDR 902,8 993,0 1.098,0 1.263,9 1.477,5 1.722,1

USD 357,6 397,9 481,9 692,0 758,3 955,9

JPY 297,6 302,5 281,2 278,3 229,8 246,2

EUR 65,0 58,5 57,5 71,1 76,9 89,9

Other currencies 58,6 57,1 59,1 70,2 62,4 60,7

Total Eq. in Trillion IDR 1.681,7 1.808,9 1.977,7 2.375,5 2.604,9 3.074,8

Foreign Currency Portion 46,3% 45,1% 44,5% 46,8% 43,3% 44,0%

Exchange Rate Assumption USD/IDR 8.991 9.068 9.670 12.189,0 12.440,0 13.840,0

----------------Multiple Currencies -----------------------

2014 Nov-152012 2013

Central Government Debt Ratios

Debt to GDP Ratio Interest Payment to Revenue and Expenditure Ratio

Debt Service to GDP Ratio Interest Payment to Tax Revenue &

Central Government Expenditure Ratio

29 Notes: Using GDP at Current Market Prices [2010 Version] * Preliminary Figures

24.5%23.1% 23.0%

24.9% 24.7%

0%

5%

10%

15%

20%

25%

30%

2010 2011 2012 2013 2014*

8.9

%

7.7

%

7.5

%

7.9

%

8.7

%

8.5

%

7.2

%

6.7

%

6.8

%

7.6

%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

2010 2011 2012 2013 2014*

Interest to Revenue Interest to Expenditure

3.1%

2.9%

3.2%

2.9%

3.4%

3%

3%

3%

3%

3%

4%

2010 2011 2012 2013 2014*

12.2

%

10.7

%

10.8

%

10.5

%

11.7

%

12.7

%

10.6

%

9.9%

9.9%

11.2

%

0%

2%

4%

6%

8%

10%

12%

14%

2010 2011 2012 2013 2014*to Tax Revenue to Central Gov't Expenditure

Risk Indicators

30 Risk indicators are improving amidst pressure from rupiah depreciation Risk indicators show improvements in interest rate risk and stability in exchange and refinancing risks

Interest Rate Risk Exchange Rate Risk

Debt Maturing in 1,3, and 5 years Average Time To Maturity (ATM) - Years

Notes: *)Preliminary Figures **)Using GDP at Current Market Prices [2010 Version]

20,318,8

16,2 16,014,8 14,5

26,1 25,9

22,5 23,220,9 20,5

2010 2011 2012 2013 2014*) Q3-2015

Variable rate ratio [%] Refixing rate [%]

11,3 10,4 10,2 11,7 10,712,3

46,2 45,1 44,446,7

43,346,5

2010 2011 2012 2013 2014*)

FX Debt to GDP ratio (%) **) FX Debt to total debt ratio (%)

9,46

9,32

9,70

9,60

9,74

9,60

2010 2011 2012 2013 2014*) Q3-2015

ATM (in years)

7,1 8,2 7,28,6 7,7 7,5

20,822,7 21,5 21,8

20,2 20,6

34,2 34,632,4 33,4

33,9 33,9

2010 2011 2012 2013 2014*) Q3-2015in < 1 year (%) in < 3 year (%) in < 5 year (%)

END OF PRESENTATION Directorate General of Budget Financing and Risk Management Ministry of Finance of Republic of Indonesia Directorate of Government Debt Securities Frans Seda building, 4th floor, Jl. Wahidin Raya No. 1, Jakarta Pusat Postal Code: 10710 Phone: +6221 3810175 Fax. : +6221 3846516 Website: www.djppr.kemenkeu.go.id

241.7

326.2

356.5 361.4

497.0 505.5

552.3

610.1

650.2 647.2

27.09%

24.01%

21.77%

24.11%

19.74%20.71%

12.79%

22.79% 22.86%23.57%

0.00%

10.00%

20.00%

30.00%

0

100

200

300

400

500

600

700

2008 2009 2010 2011 2012 2013 Mar-14 Dec-14 May-15 Oct-15

Govt. Securities (GS) Bond Deposit Stock

Mutual Funds Others Total Investment (in Trillion) % GS to Total Investment (RHS)

90.1

108.4

141.5 136.5

156.4

169.5

180.4 185.1

190.6 191.3

27.9%

27.4%

21.9% 22.6%

19.7%

18.4%16.9%

16.7% 16.5% 17.9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

20

40

60

80

100

120

140

160

180

200

2008 2009 2010 2011 2012 2013 Dec-14 Feb-15 Jun-15 Oct-15

Govt. Securities (GS) Bond Deposit

Stock Mutual Funds Others

Total Investment (in Trillion) % GS to Total Investment (RHS)

Domestic Institutional Investors

Insurance Company Mutual Fund

Source: Financial Service Authority (OJK), data processsed 32

71.48

110.13

142.97

159.00

180.28

244.32

220.24

235.79247.24

262.28

45%

37%

33%

28%

25%

20%

25%

20%21% 22%

0%

10%

20%

30%

40%

50%

60%

0

30

60

90

120

150

180

210

240

270

Government Securities (GS) Deposit Bond Stock Others Total Investasi % SBN (RHS)

Pension Fund