Press Release

December 10, 2021

PT Perusahaan Pengelola Aset (Persero)
Analysts: Danan Dito / Handhayu Kusumowinahyu
Phone/Fax/E-mail: (62-21) 5096 8469 / 5096 8468 / danan.dito@pefindo.co.id / handhayu.kusumowinahyu@pefindo.co.id
CREDIT PROFILE FINANCIAL HIGHLIGHTS
As of/for the year ended Sep-2021 Dec-2020 Dec-2019 Dec-2018
Rating idAA/Stable
(Unaudited) (Audited) (Audited) (Audited)
Total assets [in IDR bn] 17,850.6 12,958.0 14,415.4 11,744.5
Rated Issues Total equity [in IDR bn] 9,557.6 3,658.1 5,423.5 5,262.0
Bond I/2020 idAA Total revenues [IDR bn] 3,204.8 4,526.3 6,873.9 7,021.8
MTN I/2019 idAA Pre-tax profit [in IDR bn] 90.2 264.7 494.9 615.8
Rating Period Net income [in IDR bn] * 14.6 105.3 324.9 426.1
December 8, 2021 – March 1, 2022 Cost to income [%] 84.4 83.3 87.5 86.5
ROAA [%] **0.1 0.8 2.5 4.0
Liquid assets/total liabilities [%] 138.2 64.7 72.8 84.5
Rating History
Liquid assets/total assets [%] 64.2 46.4 45.4 46.6
MAR 2021 idA/Positive
ST debt/total adjusted assets [%] 17.5 27.3 22.4 17.7
MAR 2020 idA/Stable
LT debt/adjusted assets [%] 15.6 23.0 13.0 8.7
OCT 2019 idA/Stable
USD exchange rate [USD/IDR] 14,235 14,105 13,901 14,481

*Attributable to Parent (After Minority Interest)

**Annualized
The above ratios have been computed based on information from the company and published accounts. Where applicable,
some items have been reclassified according to PEFINDO’s definitions.

PPA’s rating raised to “idAA” as the holding establishment signals progress toward NAMCO

PEFINDO has raised the ratings of PT Perusahaan Pengelola Aset (Persero) (PPA), its Bond I/2020, and Medium-Term Notes (MTN)
I/2019 to “idAA” from previously “idA”. The outlook for the corporate rating has been revised to “stable” from previously “positive”.
The rating action reflects our view that PPA’s ongoing transformation into a national asset management company (NAMCO), as
reflected in PPA’s appointment to manage low-quality financing assets in one of sharia banks in Indonesia, has made significant
progress. The issuance of government regulation (Peraturan Pemerintah, PP) No. 113/2021, establishing PT Danareksa (Persero) as
a holding company, indicates PPA’s legal establishment as a NAMCO is close to realization, which is likely to be finalized by issuance
of a separate PP in the near term. The transformation highlights PPA’s importance to the holding and strengthens its strategic functions,
leading to our view of PPA’s status as a critical government related entity, having very important role and very strong link to the
government. Accordingly, we expect the transformation to significantly increase the likelihood of extraordinary support from the
government.

An obligor rated idAA differs from the highest-rated obligors only to a small degree, and has a very strong capacity to meet its long-
term financial commitments relative to those of other Indonesian obligors.

The rating reflects a very strong likelihood of support from the Indonesian government, strong positioning as a distressed asset
management company, and strong capitalization. However, the rating is constrained by weak profitability.

The rating may be raised if PEFINDO views an even stronger likelihood of support from the Indonesian government. This must be
accompanied by greater role and contribution to the government and to the banking industry as a national asset management company,
as well as maintenance of moderate financial performance. However, the rating may be lowered if there is significant weakening of
support and commitment from the Indonesian government. Such a downside pressure may also arise if PPA’s financial indicators
deteriorate significantly without any strong indication of support from the Indonesian government.

Established in 2004 through Peraturan Pemerintah (PP) No. 10/2004 to manage assets of ex-Indonesian Banking Restructuring Agency
(IBRA or BPPN), PPA received a larger mandate through PP no. 61/2008 to not only manage assets from ex-BPPN but also assets
from other state-owned enterprises (SOEs), Restructuring and Revitalizing SOEs, provide asset management and financing services
to other parties, as well as setting up a commercial line of business. In 2014, the mandate was further expanded to comprise business
consultation and asset management and development services, including for regional government and private sector. Its subsidiaries
include PT PPA Finance (99.99% ownership) and PT PPA Kapital (99.99%). PPA is wholly owned by the Indonesian government.

http://www.pefindo.com December 2021

 Press Release
December 10, 2021

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http://www.pefindo.com December 2021