MINISTRY OF FINANCE OF REPUBLIC OF INDONESIA

DIRECTORATE GENERAL OF DEBT MANAGEMENT

 Table of Contents
Chapter 1 16. Loan Disbursement 2012 - Project Financing
Backgrounds, Debt Management Objective and Strategy, 17. Loan Disbursement 2012 - Project Financing (Chart)
Debt Instruments, Legal Basis
1. Backgrounds (1)
Chapter 3
2. Backgrounds (2) Debt Portfolio (Outstanding, Maturity Profile, Change in
3. Debt Management Objectives and Strategy Securities and Loans Positions)
4. Debt Instruments (1)
18. Government Debt Outstanding 2007-2012
5. Debt Instruments (2)
19. Government Debt Outstanding 2007-2012 (Chart)
6. Debt Management: Legal Basis
20. Debt Maturity Profile as of December 31,2012
(Chart)
Chapter 2
21. Government Securities Outstanding 2007-2012
State Budget, Deficit and Its Financing
22. Loans Outstanding by Creditor Types
7. State Budget (APBN) 2008–2013
23. Loans Outstanding by Creditor Types (Chart)
8. Financing Cash flow 2008-2012
24. Loans Outstanding by Economic Sectors
9. Fiscal Deficit and State Budget Financing, 2008-2013
25. Loans Outstanding by Economic Sectors (Chart)
10. Deficit in Various Countries 2008-2013
26. Government Debt Outstanding - Main Currencies
11. Budget and Realization of Debt Financing 2012
27. Government Debt Outstanding - Other Currencies
12. Realization of Government Securities Issuance 2012
28. Government Debt Outstanding - by Currencies
13. Loans Drawing by Type of Financing, 2007-2012 (Chart)
14. Program Loan 2007-2012 29. Loans Drawing Proportion, by Financing Type (Chart)
15. External Loan Financing 2007 – 2012 (Chart)

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Table of Contents

Chapter 4 Chapter 5
Costs of Borrowing (Debt Services, Cost of Fund, Yield
Debt Portfolio Management Performance (Debt
Curve, External Debt’s Cost)
Performance Measurement and Comparison, Loan
Disbursement, Government Debt Securities Re-profiling)
44. Debt Services Realizations, Fiscal Year 2012
30. Central Government Debt to GDP Ratio
45. Debt Services Realizations, Fiscal Year 2012 (Chart)
31. Debt to GDP Ratio, Indonesia & some Countries
46. Interest Payments Ratio
32. Debt to GDP Ratio, Indonesia & some Countries
(Chart) 47. Interest Payments to Debt Total
33. Maturity Profile of Tradable Securities as of 48. Interest Payments Realization
December 31, 2012 49. Terms and Conditions of Loan from Multilateral
34. Debt Switching and Buyback 50. Terms and Conditions of Loan from Bilateral (Japan)
35. Debt Reduction through Debt Swap Scheme 51. Domestic Government Debt Securities Yield Curve
36. Securities Restructuring 2003 52. Indonesian Global Bond Yield Curve
37. Securities Restructuring 2006
38. Loans Disbursement Performance Chapter 6
39. External Loan Services to Reserves Ratio Performance of Secondary Market for Govt. Securities
(Trading Volume, Govt. Securities’ Ownership Structure)
40. Debt to GDP Ratio, Some Countries & The Changes
53. Average Daily Trading of Domestic Gov’t. Securities
41. Debt per Capita, of Some Countries
54. Government Debt Securities Ownership
42. Debt per Capita, of Some Countries & The Changes
55. Domestic Debt Government Securities Ownership
43. Debt Risk Indicators, 2007-2012

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Table of Contents

56. Domestic Debt Government Securities Ownership 64. Indonesia Sovereign Credit Rating Performance
( in % ) (1)
57. Foreign Ownership of Domestic Government 65. Indonesia Sovereign Credit Rating Performance
Securities by Tenor (2)
58. Spread over UST- Mar 17 66. Government Guarantee Outstanding and Budget
Allocation
59. Spread over UST- Feb 22
67. BPK Opinion on Government Financial Report
60. Spread over UST- Feb 42
68. Conclusion

Chapter 7
Rating, Government Guarantee, Supreme Audit Agency
Opinion (BPK), Conclusion
61. Credit Rating of Indonesia
62. Indonesia Credit Rating Performance (1)
63. Indonesia Credit Rating Performance (2)

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Chapter 1

Background, Debt Management Strategy and

Objective, Debt Instruments, Legal Basis

Kementerian Keuangan
Ministry of Finance –– Republik
Republic Indonesia
of Indonesia
 Background (1)

 Debt management and policy is an integral part of fiscal policy which also
constructs economic policy and management in general.
 Ultimate objectives of economic management:
 Welfare creation and maintenance in the form of:
 Reducing unemployment.
 Alleviating poverty.
 Spurring more growth in the economy.
 Security and stability enhancement.
 Debt is materialized if state budget is in deficit.
 Deficit financing through debt has been perceived to be a standard approach in
most of the countries in a modern world:
 Debt is primary tool to fill fiscal gap and to refinance matured debts;
 Debt refinancing will end up with new and better debt profile in term of risk
and fee.

Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Background (2)

 Government debt, in nominal term, has increased due to:

 Legacy debts that need to be refinanced;
 Inevitable effect of currency and banking crises in 1997/1998:
 Exchange rate depreciation;
 Banking bail out and recapitalization;
 Part of proceed coming from asset recovery used for debt/banking recap securities repayment.

 Fiscal deficit financing is also a result of political process and of political decision made
by the Government and the Parliament, which is intended for:
 Supporting fiscal stimuli through development activity in infrastructure, agriculture, energy, and
another kind of “pump priming” project;
 Sustaining people’s welfare program such as PNPM, BOS, Jamkesmas, Raskin, PKH, subsidy;
 Supporting real sector’s activity, for instance through tax incentive;
 Maintaining 20% of state budget to back up education sector;
 Enhancing army and defense system;
 Continuing bureaucratic reform.
 Access to soft loans coming from multilateral donors has been restricted by:
 Indonesia is no longer considered as low income country;
 How much upper limit of foreign loans can be received by an economy.

Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Debt Management Strategy and Objective

 Objectives
 Long-term :
 Securing Government Budget debt financing needs at minimum cost and tolerable risk level, thus
fiscal sustainability can be maintained
 Supporting efforts to develop a deep, active and liquid Government Securities market.
 Short-term :
 Ensuring the availability of funds to cover budget deficit and to meet debt repayment obligations in
a timely and efficient manner
 General Strategies
 optimizing potential sources of financing from domestic market through issuance of IDR denominated
Government securities and domestic loan disbursement;
 developing debt instrument to obtain flexibility in selecting a more suitable, cost-efficient and minimum risk
instrument;
 utilizing foreign loans to finance priority projects, at favorable terms & conditions for the Government, and
without having any political agenda from creditors;
 maintaining the medium term policy of reducing the outstanding of foreign loan;
 improving coordination with monetary and capital market authorities, particularly to support the financial
deepening;
 improving coordination and communication with various parties to enhance the efficiency of loan
management and improve sovereign credit rating

Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Debt Instruments (1)

 Government Loan consists of external and domestic loans:

 External Loan
World Bank, Asian Development Bank, Islamic Development Bank and bilateral
donors (Japan, Germany, France, etc.) and Export Credit.
 Program Loan:
Intended for budget support. Its disbursement is a function of the realization of stated
policy matrix aiming at the targets set up in MDGs scheme (poverty alleviation,
education, and corruption eradication), people empowerment and also policy related
with climate change and infrastructure development.
 Project Loan :
To support infrastructure project in transportation, energy etc and also poverty
alleviation project.
 Domestic Loan
 Government Regulation No. 54 Year 2008 on Domestic Loan Procurement Procedure and
Domestic Loan Channeling;
 Coming from state-owned enterprise, local government and local state-owned enterprise;
 To finance policy related with the effort to support local industry, infrastructure project for
public service and investment generating revenue project.

Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Debt Instruments (2)

 Government securities (SBN) in local and foreign currency denominated,

tradable and non-tradable, fixed and variable:
 Government Debt Securities (SUN)
 T-Bills: short-term (up to 1 year);
 Govt. Bond (> 1 year)
 Coupon Bond
 Tradable: ORI, FR/VR bond, Global bond
 Non tradable: SRBI for bank recap, bond issued for Bank Indonesia’s recap
and restructuring of banking industry
 Zero coupon

 Government Islamic securities/Sukuk (SBSN) in domestic and foreign

currency denominated in the scheme of Ijarah, Musyarakah, Istisna,
etc
 Islamic T-Bills;
 IFR/Ijarah Fixed Rate; Global Sukuk; SDHI/Indonesian Haj Fund Sukuk; Project Based
Sukuk (PBS).

Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Legal Basis

 Laws and Regulations:

 Law Number 17/2003 on State Finance
 Law Number 1/2004 on State Treasury
 Law Number 15/2004 on Inquiry of State Finance Management and Responsibility
 Law Number 19/2008 on Government Islamic Securities
 Law Number 24/2002 on Government Securities
 Government Regulation Number 10/2011 on External Loan Procurement Procedure and
Grant Receipt
 Government Regulation Number 54/2008 on Domestic Loan Procurement Procedure and
Domestic Loan Channeling
 Setting up, among other things, good governance principle:
 Debt cannot be separated from state budget and subject to the approval from
parliament
 A good policy coordination (MoF, Ministry of Planning & BI) is essential for having sound
debt management
 Close and efficient supervision on government securities’ trading activities in
secondary market by the stock market authority
 Accountability and transparency in whole range of debt management span

Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Chapter 2

State Budget, Deficit and Its Financing

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 State Budget (APBN) 2008–2013
[ Triliun Rupiah ]

LKPP LKPP LKPP LKPP BUDGET BUDGET

2008 2009 2010 2011 2012 2013
A. Revenues and Grants 981.6 848.8 995.3 1,210.6 1,358.2 1,529.7
I. Domestic Revenues 979.3 847.1 992.3 1,205.4 1,357.4 1,525.2
1. Tax Revenues 658.7 619.9 723.3 873.9 1,016.2 1,193.0
2. Non Tax Revenues 320.6 227.2 268.9 331.5 341.1 332.2
/ II. Grants 2.3 1.7 3.0 5.2 0.8 4.5
B. Expenditures 985.7 937.4 1,042.1 1,295.0 1,548.3 1,683.0
I. Central Government 693.4 628.8 697.4 883.7 1,069.5 1,154.4
a. Interest Payments 88.4 93.8 88.4 93.2 117.8 113.2
- Domestic Currency 59.9 63.8 61.4 79.6 84.7 80.7
- Foreign Currency 28.5 30.0 26.9 13.6 33.0 32.5
b. Subsidies 275.3 138.1 192.7 295.3 245.1 317.2
/ II. Transfers to Regions 292.4 308.6 344.7 411.3 478.8 528.6
C./ Primary Balance 84.3 5.2 41.5 8.8 (72.3) (40.1)
D.
/ Budget Surplus (Deficit) (A-B) (4.1) (88.6) (46.8) (84.4) (190.1) (153.3)
E. Financing 84.1 112.6 91.6 130.9 190.1 153.3
I. Debt 67.5 87.1 86.9 102.7 156.2 161.5
II. Non Debt 16.6 25.5 4.6 28.3 33.9 (8.1)
Financing Surplus (Deficit) 80.0 23.9 44.7 46.5 0.0 0.0
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Financing Cashflow 2008-2012
[ in Billions IDR ]
LKPP LKPP LKPP LKPP BUDGET
2008 2009 2010 2011 2012
Financing Needs (115,579) (224,292) (203,538) (245,419) (386,124)
Budget Deficit (4,121) (88,619) (46,846) (84,339) (190,105)
Debt Repayment (108,958) (123,279) (135,893) (138,818) (169,121)
Bond Redemptions and Buybacks (40,333) (49,067) (76,532) (87,272) (110,823)
Foreign Loan Amortization (63,435) (68,031) (50,633) (47,323) (49,725)
Domestic Loan Amortization - - - - (141)
On Lending (5,189) (6,181) (8,729) (4,224) (8,432)
Non Debt Financing Needs (2,500) (12,395) (20,799) (22,262) (26,898)
Financing Sources 195,529 248,257 248,243 292,029 386,124
Debt 176,468 207,200 222,822 241,503 325,282
Government Securities Issuance, Gross 126,249 148,538 167,634 207,136 270,419
Domestic 86,932 101,736 142,593 176,659 -
Foreign 39,317 46,802 25,041 30,477 -
Foreign Loan Disbursements 50,219 58,662 54,795 33,747 53,731
Program Loans 30,100 28,938 28,975 15,266 15,604
Project Loans to Central Government 14,929 23,544 17,091 14,257 29,695
Project Loans On Lending 5,189 6,181 8,729 4,224 8,432
Domestic Loan Disbursements - - 394 619 1,132
Non Debt 19,061 41,057 25,421 50,526 60,842
Financing Surplus (Deficit) 79,950 23,965 44,706 46,609 0
Net Financing Cash Flows 84,072 112,583 91,551 130,949 190,104
Net Debt 67,510 83,921 86,929 102,685 156,161
Government Securities 85,916 99,471 91,102 119,864 159,596
Foreign Loans
Domestic Loans (18,406) (15,550) (4,567) (17,799) (4,426)
Domestic Loans - - 394 619 991
Net Non Debt 16,561 28,662 4,622 28,264 33,943

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Fiscal Deficit and State Budget Financing 2008-2013
 Since 2005, government securities have played role as a primary instrument of
financing
 Refinancing strategy to achieve a better debt profile explains the movement of
[Trillion Rupiah] [ % to GDP]
government securities in 2007-2012.
200 4
180

180
160
3

160
140
120

120
100 99 2
80

91
86

60
34 1
40 26 28
17
20 5
0 (0.1) (89) -

(47)

(84)

(190)

(153)
(4)

(3)
(4)
(20) (8)
(12)

(17)
(18)

(19)
(40) (0.7)
(1.1) (1)
(60)
(80) (1.6) (1.7)
(100) (2)
(2.2)
(120)
(140)
(3)
(160)
(180)
(200) (4)
2008 2009 2010 2011 2012* 2013**

Securities (netto) Domestic & Foreign Loan (netto) Non Debt (netto) Budget Surplus (Deficit) Budget Deficit to GDP ratio (RHS)

Source: Ministry of Finance

Notes :
2008-2011 Audited
* BUDGET-R 2012
** BUDGET
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Deficit in Various Countries 2008-2013

6.0

4.0

2.0

0.0

-2.0

-4.0

-6.0

-8.0

-10.0

-12.0

-14.0
2008 2009 2010 2011 2012 2013

Brazil China Indonesia Japan

Mexico Russia United Kingdom United States

Source: International Monetary Fund, World Economic Outlook Database, October 2012 & Ministry of Finance
Notes :
- in % to GDP
- For Indonesia, period 2008 – 2011 the numbers are audited and for 2012-2013 the number is taken from Budget

 Fiscal deficit in Indonesia is lower than other countries.

 Fiscal rule stated on Law Number 17/2003 has fixed upper limit of deficit in the level of
3% of GDP. In consequence, additional debt to finance fiscal deficit is also limited.
Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Budget and Realization of Debt Financing 2012

[in trillion IDR)

Instruments BUDGET Q1 Q2 Q3 Q4 Real. 2012 [%]

TOTAL 325.28 105.13 75.08 46.62 73.68 300.50 92.4%

LOANS 54.86 6.76 3.73 4.22 17.24 31.95 58.2%

External Loan 53.73 6.64 3.56 4.08 16.74 31.02 57.7%

Program Loan 15.60 2.23 0.44 1.05 11.25 14.98 96.0%

Project Loan 38.13 4.41 3.12 3.03 5.49 16.05 42.1%

Domestic Loan 1.13 0.11 0.17 0.15 0.49 0.93 81.9%

SECURITIES 270.42 * 98.37 71.35 42.39 56.44 268.55 99.3%

Catatan:
-Data As of December 31, 2012
• Securities issuance budget is tentative, depend on financing need in term of securities portfolio management

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Realization of Government Securities Issuance 2012
(in million IDR)

Realization Nominal
%
Description Target (as of December 31,
Realization
2012)

Government Securities-net (Revised

159,596,700 159,826,290 100.14%
Budget 2012)

268,549,525 268,549,525 100.00%

Issuance Need
Government Debt Securities (GDS) 211,460,714
Domestic GDS 165,441,745
- ON 122,245,000
- SPN 30,520,000
- ORI 12,676,745
International Bonds 46,018,969
Government Islamic Debt Securities 57,088,811
Domestic Government Islamic Debt Securities 47,449,805
- IFR/PBS (- Islamic Fixed Rate Bond/Project
17,114,000
Based Sukuk (IFR/PBS))
- SPN-S 1,380,000
- SBSN Ritel 13,613,805
- SDHI 15,342,000
International Sukuk 9,639,006

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Loan Drawing by Type of Financing, 2007-2012

2012
LKPP/ LKPP/ LKPP/ LKPP/ LKPP/
Real. As of Dec 31, 2012
TYPE OF FINANCING Audited Audited Audited Audited Audited
2007 2008 2009 2010 2011 Budget Nominal % of Budget

TOTAL 34.07 50.22 58.66 55.19 34.37 54.86 31.95 58.2%

in billion US$ 3.62 4.59 6.24 5.51 3.79 6.10 3.35
1. Program Loan 19.61 30.10 28.94 28.97 15.27 15.60 14.98 96.0%
in billion US$ 2.08 2.75 3.08 3.22 1.68 1.76 1.57
a. World Bank 5.66 12.91 14.65 15.34 10.76 8.13 8.61 105.9%
b. A D B 8.47 9.17 5.06 6.39 3.63 5.40 5.80 107.3%
c. JAPAN 3.77 4.87 6.07 4.59 0.87 1.80 - 0.0%
d. FRANCE - 2.20 2.79 2.73 - - - 0.0%
e. IDB 1.79 - - - - 0.53 0.57 107.4%
f. Others - - - - - - - 0.0%
2. Project Loan 14.46 20.12 29.72 25.82 18.48 38.13 16.05 42.1%
in billion US$ 1.54 1.84 3.16 2.87 2.04 4.24 1.71
3. Domestic Loan - - - 0.39 0.62 1.13 0.93 81.9%
in billion US$ - - - 0.04 0.07 0.13 0.07

Notes:
Nominal in trillion IDR
Kementerian
Ministry
Kementerian
of Finance
Keuangan
Keuangan
– Republic
– –Republik
Republik
of Indonesia
Indonesia
 Program Loan 2007-2012
[ in Million USD]
2007 2008 2009 2010 2011 2012
Real - as
LENDERS
Real Real BUDGET of Dec
31, 2012
A. WORLD BANK 600 1,197 1,553 1,704 1,011 904 907
1 Institutional, Tax Administration, Social And
Investment – Development Policy Loan 300 300
(INSTANSI-DPL)
2 BOS-KITA Refinancing 2 113 113
3 PNPM Refinancing Rural 4, Urban 3 249 252
4 Local Government Development Program - DAK
42 42
Reimbursements
5 Connectivity Development Policy Loan 100 100
6 Financial Sector and Investment Climate
Reform and Modernization Development Policy 100 100
Loan (FIRM DPL)
B. ASIAN DEVELOPMENT BANK 900 830 500 700 400 600 600
1 Capital Market Development Program (Financial
Market Dev and Integration Program) 300 300

2 Enhancing Inclusive Growth Through

300 300
Connectivity (EIGTC)
C. JICA, JAPAN 400 500 600 505 100 200 -
1 DPL8 - Cofinancing with WB 200 -
D. ISLAMIC DEVELOPMENT BANK - - - - - 59 59
1 Integrated Community Driven Development
59 59
(ICDD)
TOTAL 1,900 2,727 2,953 3,209 1,511 1,763 1,566

Source : Directorate of External Debt and Grant

Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 External Loan Financing 2007 - 2012

2007 2008 2009 2010 2011 2012*

70
52.5 54.8 53.7
50 45.0
34.1 33.7
30

10

-10
[ in trillion IDR ]

-4.6 -4.4
-18.4 -15.5 -17.8
-30 -23.9

-50
-51.5
-70 -57.9 -59.4 -58.2
-63.4
-68.0
-90
External Loan Disbursement, gross External Loan Principal Repayment External Loan Financing (nett)
[ in trillion IDR ]
2007 2008 2009 2010 2011 2012*
External Loan Disbursement, gross 34.07 45.01 52.48 54.79 33.75 53.73
External Loan Principal Repayment (57.92) (63.44) (68.03) (59.36) (51.55) (58.16)
External Loan Financing (nett) (23.85) (18.42) (15.55) (4.57) (17.80) (4.43)

Notes :
*) Budget 2012
Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Loan Disbursement 2012 - Project Financing

BUDGET Real. As of Dec 31, 2012

% to BUDGET
COUNTRY Million USD Billion IDR Million USD Billion IDR
2012

A. Int'l Organization 531.09 4,985.87 12.5%

ADB 217.41 2,050.66 5.1%

WORLD BANK (IBRD & IDA) 272.85 2,552.52 6.4%

IDB 27.93 264.88 0.7%

IFAD 12.90 117.81 0.3%

B. Country 1,175.42 11,059.14 27.7%

JAPAN 569.75 5,308.72 13.4%

KOREA 254.59 2,431.62 6.0%

AUSTRALIA 37.41 347.26 0.9%

CHINA 100.41 957.97 2.4%

SINGAPORE 34.75 327.63 0.8%

USA 67.15 633.22 1.6%

OTHERS 111.36 1,052.73 2.6%

TOTAL 4,236.36 38,127.20 1,706.51 16,045.02 40.3%

Kementerian
Ministry
Kementerian
of Finance
Keuangan
Keuangan
– Republic
– –Republik
Republik
of Indonesia
Indonesia
 Loan Disbursement 2012 - Project Financing (chart)
[ in billion IDR ] [ % of Project Loan ]

6,000 16.0%
13.4%
5,000 14.0%
12.0%
4,000 10.0%
3,000 6.4% 6.0% 8.0%
5.1%
2,000 6.0%
2.4% 2.6% 4.0%
1.6%
1,000 0.7% 0.3%
0.9% 0.8% 2.0%
- 0.0%

Disbursement % to Budget (RHS)

BUDGET Real. As of Dec 31, 2012 % to
COUNTRY Million USD Billion IDR Million USD Billion IDR BUDGET
2012
TOTAL 4,236.36 38,127.20 1,706.51 16,045.02 40.3%

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Chapter 3

Debt Portfolio
(Outstanding, Maturity Profile,
Change in Securities and Loans Positions)

Kementerian
Ministry
Ministryofof
Keuangan
Finance
Finance–––Republic
Republik
Republicof
Indonesia
ofIndonesia
Indonesia
 Government Debt Outstanding, 2007-2012
2007 2008 2009 2010 2011 As of Dec 31, 2012
Nominal %

Central Govt. Debt Total (in trillion IDR) 1,389.41 1,636.74 1,590.66 1,681.66 1,808.95 1,975.42 100.0%

a. Loans (in trillion IDR) 586.36 730.25 611.20 617.25 621.29 614.32 31.1%
1). External Loan 586.36 730.25 611.20 616.86 620.28 612.52
Bilateral *) 386.49 484.90 387.92 380.67 381.66 358.12 18.1%
Multilateral **) 179.47 222.69 202.37 208.28 212.96 229.68 11.6%
Commercial ***) 19.62 21.69 20.24 27.34 25.15 24.32 1.2%
Suppliers ***) 0.77 0.97 0.66 0.57 0.50 0.41 0.0%
Others ***) - - - - - - 0.0%
2). Domestic Loan - - - 0.39 1.01 1.80

b. Securities (in trillion IDR) 803.06 906.50 979.46 1,064.40 1,187.66 1,361.10 68.9%
Foreign Currency 65.93 122.64 143.15 161.97 195.63 264.91 13.4%
Local Currency 737.13 783.86 836.31 902.43 992.03 1,096.19 55.5%

Central Govt. Debt Total 147.51 149.47 169.22 187.04 199.49 204.28 100.0%
(In billion US$)

eg :

Local Currency Securities (in billion US$) 78.26 71.58 88.97 100.37 109.40 113.36 55.5%

Foreign Currency Securities (in billion US$) 7.00 11.20 15.23 18.02 21.57 27.39 13.4%

Local Currency Loan (in billion US$) - - - 0.04 0.11 0.19 0.1%

Foreign Currency Loan (in billion US$) 62.25 66.69 65.02 68.61 68.40 63.34 31.0%

Exchange Rate (IDR to US$1) 9,419 10,950 9,400 8,991 9,068 9,670

Notes :
* Semi commercials included
** Some semi commercials included
*** Commercials
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Government Debt Outstanding, 2007-2012 (chart)
[ in trillion IDR ]
2,000
1,800
614
1,600
621
1,400 617
730 611
1,200
586
1,000
800
1,361
600 1,188
979 1,064
400 803 906

200
-
2007 2008 2009 2010 2011 2012+

Loans Securities
[ in trillion IDR and % ]
Year 2007 2008 2009 2010 2011 2012+
Loans 586 42% 730 45% 611 38% 617 37% 621 37% 614 31%
Securities 803 58% 906 55% 979 62% 1,064 63% 1,188 63% 1,361 69%

Central Govt. Debt Total 1,389 100% 1,637 100% 1,591 100% 1,682 100% 1,809 100% 1,975 100%

Notes :
+ Provisional
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Debt Maturity Profile as of Desember 31, 2012
[in trillion IDR]
160

140
69%
31%
120

56 56 100% 30
100 57
44 41
80 52 43 36
45
60
2
12

92
25 8
40 1
77
76

72

18 10
70
69

60 1
8 8
57

21
52

15
50

47
7 2

44

43
20

35
32

31
28

28
27
26
1

20
18
4

15
14
9 1

2036 4
-
2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2037

2038

2039

2040-2055
Loans Securities
Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Loans 42% 44% 42% 50% 48% 39% 43% 37% 37% 25% 45% 54% 39% 43% 22%
Securities 58% 56% 58% 50% 52% 61% 57% 63% 63% 75% 55% 46% 61% 57% 78%

Year 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040-2055
Loans 25% 100% 24% 23% 15% 32% 100% 13% 22% 3% 2% 100% 3%
Securities 75% 0% 76% 77% 85% 68% 0% 87% 78% 97% 98% 0% 97%

Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Government Securities Outstanding 2007 – 2012

GOVERNMENT SECURITIES Dec '07 Dec '08 Dec-'09 Dec-10 Dec-11 28-Dec-12

A. Tradable 543,680 648,335 724,898 803,191 919,236 1,085,173

1. Rupiah Denominated 477,747 525,695 581,748 641,215 723,606 820,266

a. Government Debt Securities (SUN) 477,747 520,995 570,215 615,498 684,618 757,231
1) T-Bill 4,169 10,012 24,700 29,795 29,900 22,820
2) Zero-coupon bond 10,500 11,491 8,686 2,512 2,512 1,263
3) Fixed Rate bond +) 294,453 353,558 393,543 440,396 517,142 610,393
4) Variable Rate bond 168,625 145,934 143,286 142,795 135,063 122,755
b. Government Islamic Securities (SBSN) - 4,700 11,533 25,717 38,988 63,035
1) Fixed Rate Islamic bond ++) - 4,700 11,533 25,717 37,668 62,840
2) T-Bill Syariah 1,320 195
2. Foreign Currency Denominated 65,933 122,640 143,150 161,976 195,630 264,907
a. Government bond (million US$) 7,000 11,200 14,200 16,200 18,700 22,950
b. Islamic bond (million US$) - - 650 650 1,650 2,650
c. Government bond (million JPY) - - 35,000 95,000 95,000 155,000

B. Non Tradable 259,404 258,160 254,561 261,215 268,419 275,927

a. Promissory note to central bank 259,404 258,160 251,875 248,432 244,636 240,144
b. T-Bill (Private Placement) - - - - - -
c. Government Islamic Securities - - 2,686 12,783 23,783 35,783

TOTAL GOVERNMENT SECURITIES (A +B) 803,084 906,495 979,459 1,064,406 1,187,655 1,361,101
Notes:
- Nominal on billion IDR
+)
- Includes ORI
- ++) Includes Sukuk Ritel
- Exchange rate (IDR/US$1) 9,419 10,950 9,400 8,991 9,068 9,670
- Exchange rate (IDR/JPY1) 101.70 110.29 116.80 111.97

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Loans Outstanding by Creditor Types
[ in trillion IDR ]
As of Dec 31 - 2012
COUNTRIES 2007 2008 2009 2010 2011
Nominal % Total

EXTERNAL LOAN 586.36 730.25 611.20 616.86 620.28 612.52 99.7%

1. BILATERAL 386.49 484.90 387.92 380.67 381.66 358.12 58.3%

a. Japan 232.01 324.28 259.50 274.47 280.45 254.64 41.5%

b. France 24.24 27.86 25.56 21.88 20.90 21.30 3.5%

c. Germany 35.92 37.80 28.34 22.65 20.29 20.00 3.3%

d. Other Bilateral 94.31 94.96 74.52 61.68 60.02 62.18 10.1%

2. MULTILATERAL 179.47 222.69 202.37 208.28 212.96 229.68 37.4%

a. World Bank 78.88 98.16 94.96 102.23 108.73 122.14 19.9%

*)
b. ADB 95.86 118.99 102.32 100.40 97.92 100.34 16.3%

c. IDB 2.19 2.81 2.96 3.76 4.23 5.05 0.8%

d. Other Multilateral 2.55 2.73 2.13 1.89 2.09 2.14 0.3%

3. COMMERCIAL 19.62 21.69 20.24 27.34 25.15 24.32 4.0%

4. SUPPLIERS 0.77 0.97 0.66 0.57 0.50 0.41 0.1%

DOMESTIC LOAN 0.39 1.01 1.80 0.3%

TOTAL*) 586.36 730.25 611.20 617.25 621.29 614.32 100.0%

Notes :
*) Global Bonds excluded.
Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Loans Outstanding by Creditor Types (chart)

100%

90%
16% 16% 17% 16% 16% 16%
80%

13% 13%
70% 16% 17% 18%
20%

60%

50%

40%

30%

44% 42% 45% 45% 41%

20% 40%

10%

0%
2007 2008 2009 2010 2011 Nov 30 - 2012

Japan France Germany Other Bilateral World Bank

ADB IDB Other Multilateral COMMERCIAL SUPPLIERS

Multilateral (World Bank) and Bilateral (Japan) external loan are long matured &
relatively cheap financing sources alternatives
Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Loans Outstanding by Economic Sectors

[ in billion IDR ]

2007 2008 2009 2010 2011 2012

Agriculture, Husbandry, Forestry & Fishing 15,454 17,683 16,773 18,130 17,658 13,881
Mining & Drilling 6,231 8,801 7,294 7,527 7,481 5,671
Manufacturing 22,743 29,121 21,534 19,946 18,483 14,916
Electricity, Gas & Water Works 57,992 74,873 51,442 52,308 52,839 43,607
Housing & Building 94,651 122,039 115,160 115,726 115,607 95,764
Trading, Hotel & Restaurant 8,997 10,510 7,717 6,990 6,223 5,276
Transport & Communication 27,290 29,814 22,257 20,015 20,952 17,516
Financial, Leasing and Financial Services 74,537 96,005 81,995 86,627 89,688 57,559
Services 129,325 167,009 145,353 150,966 160,109 237,653
Other Sectors 149,135 174,391 141,673 134,212 126,795 122,479

TOTAL 586,356 730,246 611,198 612,446 615,834 614,322

Source : Ministry of Finance & Bank Indonesia

Notes :
- As of December 31, 2012
- Economic Sectors Classification by Bank Indonesia and National Statistics Agency
- Financial Sector is program loan dominated
Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Loans Outstanding by Economic Sectors (chart)
Source : Ministry of Finance & Bank Indonesia
[ in billion IDR ]
200,000

174,391
167,009

160,109
150,000

150,966
149,135

145,353
141,673

134,212
129,325

126,795

122,479
122,039

115,726

115,607
115,160
100,000

96,005

95,764
94,651

89,688
86,627
81,995
74,873
74,537

50,000

57,559
57,992

29,121

52,839
52,308
51,442
22,743

21,534

19,946

18,483
18,130
17,683

17,658
16,773

43,607
15,454

14,916
13,881
10,510
8,997

8,801

7,717

7,527

7,481
7,294

6,990
6,231

6,223

5,671
29,814

5,276
27,290

22,257

20,015

20,952

17,516
-
2007 2008 2009 2010 2011 2012
Agriculture, Husbandry, Forestry & Fishing Mining & Drilling

Manufacturing Electricity, Gas & Water Works

Housing & Building Trading, Hotel & Restaurant

Transport & Communication Financial, Leasing and Financial Services

Services Other Sectors

Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Government Debt Outstanding - Main Currencies

2007 2008 2009 2010 2011 2012***

in original currencies
IDR*) 737.13 783.86 836.31 902.82 992.84 1,098.0
USD**) 28.14 32.55 35.80 39.77 44.35 49.8
JPY**) 2,941.88 2,820.48 2,713.84 2,698.75 2,585.42 2,498.8
EUR**) 7.19 6.75 5.97 5.44 4.71 4.5
SDR**) 1.41 1.74 2.01 2.15 2.19 2.2
AUD**) 0.08 0.14 0.24 0.29 0.33 0.4
Other Currencies -------------------------- Other Currencies --------------------------

in trillion IDR
IDR 737.1 783.9 836.3 902.8 992.8 1,098.0
USD 265.08 356.46 336.54 357.61 402.16 481.3
JPY 244.4 341.9 276.0 297.6 302.0 279.8
EUR 98.91 104.15 80.68 64.99 55.30 57.5
SDR 20.8 29.4 29.6 29.8 30.4 32.4
AUD 0.64 1.08 2.05 2.66 3.05 3.9
Other Currencies 22.5 19.9 29.5 26.1 23.2 22.5
Total 1,389.4 1,636.7 1,590.7 1,681.7 1,808.9 1,975.4

Mid Rate IDR to US$1 9,419.00 10,950.00 9,400.00 8,991.00 9,068.00 9,670.00
Mid Rate JPY to US$1 113.39 90.33 92.42 81.53 77.64 86.37
Mid Rate EUR to US$1 0.68 0.71 0.70 0.75 0.77 0.75

Notes :
*) IDR Currency in Trillion IDR, **) in Billions, ***) As of December 31, 2012
Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Government Debt Outstanding - Other Currencies
2007 2008 2009 2010 2011 2012**
in original currencies
ACU*) 0.03 0.02 0.20 0.27 0.30 0.34
ADB*) 0.22 0.20 0.16 0.14 0.13 0.11
CAD*) 0.19 0.18 0.17 0.16 0.15 0.14
CHF*) 0.43 0.38 0.33 0.30 0.27 0.24
CNY*) 0.00 0.00 0.00 1.43 1.55 1.55
DKK*) 0.08 0.07 0.06 0.05 0.05 0.04
GBP*) 0.64 0.58 0.51 0.46 0.41 0.36
KRW*) 152.00 168.47 184.82 184.32 196.63 205.44
KWD*) 0.02 0.01 0.01 0.01 0.01 0.01
SAR*) 0.15 0.14 0.13 0.12 0.11 0.10
WBD*) 0.00 0.00 1.12 0.71 0.42 0.21
in trillion IDR
ACU 0.40 0.38 2.90 3.69 4.22 5.05
ADB 2.03 2.19 1.50 1.30 1.16 1.06
CAD 1.81 1.60 1.49 1.41 1.31 1.35
CHF 3.57 3.94 3.02 2.83 2.62 2.55
CNY 0.00 0.00 0.00 1.94 2.23 2.38
DKK 0.16 0.15 0.10 0.08 0.07 0.07
GBP 12.04 9.15 7.69 6.36 5.77 5.66
KRW 1.53 1.46 1.49 1.47 1.54 1.86
KWD 0.57 0.59 0.43 0.37 0.20 0.30
SAR 0.37 0.41 0.32 0.28 0.26 0.26
WBD 0.00 0.00 10.56 6.39 3.78 1.99
TOTAL 22.5 19.9 29.5 26.1 23.2 22.5

Notes :
*) in Billions, **) As of December 31, 2012
Kementerian
Ministry
Ministryofof
Keuangan
Finance
Finance–––Republic
Republik
Republicof
Indonesia
ofIndonesia
Indonesia
 Government Debt Outstanding by Currencies (chart)

100%
4% 3% 3%
7% 6% 5%
90%
17% 14%
17% 18%
80% 18% 21%

70%
22% 24%
19% 21% 21%
60% 22%

50%

40%

30%
53% 53% 54% 55% 56%
48%
20%

10%

0%
2007 2008 2009 2010 2011 2012*)

IDR USD JPY EUR SDR AUD Others

Notes :
*) As of December 31, 2012
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Loans Drawing Proportion by Financing Type
[ in Trillion IDR] [%]
40 80%
35 70%
30 60%
25 50%

38.13
20 40%

29.72

25.82
15 30%
20.12

18.48
10 20%
14.46
19.61

28.97

15.27
30.10

28.94

15.60

1.13
0.62
5 10%
- 0%
2007* 2008* 2009* 2010* 2011* 2012**
PROGRAM LOAN PROJECT LOAN DOMESTIC LOAN
% PROGRAM LOAN (RHS) % PROJECT LOAN (RHS) % DOMESTIC LOAN (RHS)
[in trillion IDR]
TYPE OF LOANS 2007* % 2008* % 2009* % 2010* % 2011* % 2012** %
PROGRAM LOAN 19.61 58% 30.10 60% 28.94 49% 28.97 53% 15.27 44% 15.60 28%
PROJECT LOAN 14.46 42% 20.12 40% 29.72 51% 25.82 47% 18.48 54% 38.13 69%
DOMESTIC LOAN - 0% - 0% - 0% 0.39 1% 0.62 2% 1.13 2%
TOTAL 34.07 50.22 58.66 55.19 34.37 54.86
Notes :
*) LKPP - Audited
**) Budget 2012
Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Chapter 4

Debt Portfolio Management Performance

(Debt Performance Measurement and
Comparison, Loan Disbursement, Government
Debt Securities Re-profiling)

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Central Government Debt to GDP Ratio

[ in trillion IDR ] [%]

9,000 120%
8,000
100%
7,000
6,000 80%
5,000
60%
4,000
3,000 35.1% 33.0% 40%
28.3% 26.0% 24.4% 23.1%
2,000
20%
1,000
0 0%
2007 2008 2009 2010 2011 2012*

Debts Outstanding GDP Debt to GDP Ratio (RHS)

[ in trillion IDR ]
2007 2008 2009 2010 2011 2012*
Loans 586 730 611 612 621 614
Securities 803 906 979 1,064 1,188 1,361
Total 1,389 1,637 1,591 1,677 1,809 1,975
Sources: Ministry of Finance and National Statistics Agency, processed

Notes :
*) Provisional, based on Budget asumption
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Debt to GDP Ratio,
Indonesia & some Countries

Country 2008 2009 2010 2011 2012

Argentina 58.5 58.7 49.2 44.9 45.2
Brazil 63.5 66.9 65.2 64.9 64.1
Germany 66.9 74.7 82.4 80.6 83.0
India 74.1 74.2 68.0 67.0 67.6
Indonesia 33.0 28.3 26.0 24.4 23.3
Italy (RHS) 105.7 116.0 118.6 120.1 126.3
Japan (RHS) 191.8 210.2 215.3 229.6 236.6
Turkey 40.0 46.1 42.4 39.3 37.7
United Kingdom 52.2 68.0 75.0 81.8 88.7
United States 76.1 89.7 98.6 102.9 107.2
Source: IMF, World Economic Outlook Database, October 2012 & Ministry of Finance

Notes :
- Nominal in % to GDP
- Indonesia data: taken from audited Government Financial Statements

 The debt rises of Developed Countries are greater than Developing Countries ones
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Debt to GDP Ratio,
Indonesia & some Countries
Indonesia is better than ‘non investment grade peer group’ countries (Argentina and Turkey),
even than USA, UK, Japan, and Italy.

140 250.0

120
200.0

100

150.0
80

60
100.0

40

50.0
20

0 0.0
2008 2009 2010 2011 2012

Argentina Brazil Germany Indonesia Italy (RHS)

Turkey United States Japan (RHS) United Kingdom

Source: Bloomberg
Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Maturity Profile of Tradable Securities
as of December 31, 2012
100,00

80,00

60,00

40,00

20,00

-
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2030 2031 2032 2033 2035 2036 2037 2038 2041 2042
TOTAL 76,35 71,69 77,21 51,71 49,62 68,95 56,71 69,53 60,06 92,08 31,58 18,01 28,02 19,61 44,25 30,82 25,68 27,10 42,80 13,85 15,47 4,11 27,64 35,03 13,55 33,76
SUKUK USD - 6,29 - - - 9,67 - - - 9,67 - - - - - - - - - - - - - - - -
SUKUK IDR 8,78 7,34 18,96 - 1,17 7,91 - 0,25 - 1,21 - - 1,55 - 2,85 - 2,18 - - - - 4,11 6,74 - - -
SUN JPY - - - - - - 3,92 6,72 - 6,72 - - - - - - - - - - - - - - - -
SUN USD - 22,24 9,67 8,70 9,67 18,37 19,34 19,34 24,18 19,34 - - - - - - - - - - 15,47 - 14,51 19,34 - 21,76
SUN IDR 67,57 35,82 48,58 43,01 38,77 33,00 33,45 43,22 35,88 55,14 31,58 18,01 26,47 19,61 41,40 30,82 23,50 27,10 42,80 13,85 - - 6,40 15,69 13,55 12,00

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Debt Switching and Buyback
Debt Switching : debt management program to reduce refinancing risk
Volume of Bid
Tenor of Source Bonds Destination Bonds
Year Auction Frequency Accepted (billion
(Year) (Yaer)
IDR)
2005 1 < 1 year s.d. 4 year 15 year 5,673
2006 12 < 1 year s.d. 5 year 5 s.d. 19 year 31,179
2007 9 < 1 year s.d. 6 year 11 s.d. 20 year 15,782
2008 2 < 1 year s.d. 4 year 14 s.d. 15 year 4,571
2009 6 < 1 year s.d. 5 year 12 s.d. 15 year 2,938
2010 6 < 1 year s.d. 8 year 10 s.d. 21 year 3,920
2011 4 < 1 year s.d. 4 year 15 year 664
2012 4 < 1 year s.d. 5 year 10 s.d. 15 year 11,859
Total 76,586

Buyback : debt management program which objectives are stabilizing the market, managing portfolio of debt and
reducing Government Debt Securities outstanding which issued with high coupon
Te nor of Se rie s to be Volume of Buyba ck
Ye a r Auction Fre que ncy
Buyba ck (Ye a r) Acce pte d (billion IDR)

2003 2 1 year s.d. 3 year 8,127

2004 1 3 year s.d. 5 year 1,962
2005 4 < 1 year s.d. 4 year 5,158
2007 2 <1 year s.d. 5 year 2,859
2008 3 < 1 year s.d. 19 year 2,375
2009 2 < 1 year 8,528
2010 13 < 1 year s.d. 4 year 3,201
2011 10 < 1 year s.d. 20 year 3,500
2012 6 < 1 year s.d. 5 year 1,138
Tota l 36,848
Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Debt Reduction through Debt Swap Scheme
Project Cancelation
Country Debt Swap
Title Amount Commitment Realization
1 2 3 4 5 6
Germany Debt Swap I Elementary Education EUR 12.8 EUR 25.6 EUR 25.6
Debt Swap II Junior Secondary Education EUR 11.5 EUR 23.0 EUR 23.0
Debt Swap IIIa Financial Assistance for Environmental Investements EUR 6.3 EUR 12.5 EUR 3.2
for Micro and Small Enterprises Project
Debt Swap IIIb Strengthening the Development of National Parks in EUR 6.3 EUR 12.5 EUR 0.0
Fragile Ecosystems
Debt Swap IV School Reconstruction and Rehabilitation in EUR 10.0 EUR 20.0 EUR 20.0
Earthquake Area in Yogyakarta and Central Java
Debt Swap V Global Fund to Fight AIDS, Tubercolosis and Malaria EUR 25.0 EUR 50.0 EUR 40.0
(GFATM)
Debt Swap VII Indonesian - German Scholarship Program EUR 9.4 EUR 18.8 EUR 0.0
Italy Debt Swap I Housing and Setlement EUR 5.7 EUR 5.7 EUR 5.7
USD 24.2 USD 24.2 USD 24.2
USA Debt Development Swap Tropical Forest Conservation Act/TFCA USD 20.0 USD 29.9 USD 9.5 *)

Debt Development Swap Tropical Forest Conservation Act/TFCA II USD 23.8 USD 29.5 USD 0.0
Australia Debt Swap Debt2Health AUD 37.5 AUD 75.0 AUD 11.4
EUR 87.0 EUR 168.0 EUR 117.5
TOTAL USD 68.0 USD 83.6 USD 33.7
AUD 37.5 AUD 75.0 AUD 11.4
TOTAL in million USD 213.9 368.1 191.4

Notes :
*) TFCA - GoI contribution is USD 20 millions
- Contribution from NGO Conservation Int'l Foundation & Kehati is USD 2 millions
- Future cancellation is USD 29,921,500 (principal + interest)
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Securities Restructuring 2003

Agreement between the Government and Bank Indonesia on August 1, 2003 on the
settlement of liquidity support to banking industry (BLBI) and financial relationship
between the Government and Bank Indonesia
 Agreed BLBI amounting Rp 144.536.094.294.530
 SU-001 Rp 80.000.000.000.000
 SU-003 Rp 64.536.094.294.530
 Both series reissued with new single series SRBI-01/MK/2003 Rp
144.536.094.294.530 starting 1st August 2003.
 Repayment arranged under burden sharing scheme:
 In the case where BI’s monetary liabilities are greater than 10%, the Government will use its surplus
accrued to repay remaining principal of SRBI-01
 If it is lower than 3%, the Government shall pay a charge until BI’s monetary liabilities filled up to that
3% figure.
 Interest Rate of SRBI-01/MK/2003: 0,1% per annual (fixed, semi annual)

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Securities Restructuring 2006

Pre-restructuring
 SU-002/MK/1998:
 Date of issuance: October 23, 1998;
 Nominal: Rp20.000.000.000.000,-
 Principal is indexed to inflation, on a yearly
basis.
 After indexation, of 3% interest payment as
made on semi-annual basis calculated from
principal.
 Principal amortization is in semi-annual basis
starting from 1st October 2003 to 1 April 2018.
 SU-004/MK/1999:
 Date of issuance : May 28, 1999;
 Nominal: Rp53.779.500.000.000,-
 Principal is indexed to inflation, on a yearly
basis.
 After indexation, of 3% interest payment as
made on semi-annual basis calculated from
principal.
 Principal amortization is in semi-annual basis
starting from 1st June 2003 to 1st December
2018.
 Interest arrear and indexation SU-002 &
SU-004 IDR54.862.150.308.421:
 Interest arrear: Rp16.929.470.080.766
 Indexed to inflation: Rp37.932.680.227.655
Post-restructuring
 SU-002/MK/1998:
 Nominal: Rp20.000.000.000.000,-
 1% interest will be repaid in semi-annual
basis.
 Principal was amortized semi-annually,
starting from 1st April 2025 (no indexation
to inflation applies).
 SU-004/MK/1999:
 Nominal: Rp53.779.500.000.000,-
 3% interest will be repaid in semi-annual
basis.
 Principal was amortized semi-annually,
starting from 1st December 2025 (no
indexation to inflation applied).
 SU-007/MK/2007
 Nominal: 54.862.150.308.421
 Non tradable, 0.1% interest per annum
 Principal was installed exponentially by a
cash or tradable SUN until 2025.

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Loans Disbursement Performance

[in trillion IDR]

300
250
200
150
100
50
0

Net Commitment Disbursement Undisbursed

[in trillion IDR]
Cumulative 1967 Cumulative 1967
Year 2008 2009 2010 2011 2012
to 2007 to 2012
Net Commitment 1,711.8 56.3 109.4 161.9 204.3 266.5 1,978.3
Disbursement 1,620.9 50.4 90.0 129.4 146.8 159.2 1,780.1
Undisbursed 90.9 5.9 19.4 32.5 57.4 107.3 198.2

Notes :
- Nominal between 2008 until 2012 have been cumulatively calculated since January 1, 2008.
- Net commitment = signed loans; disbursement = disbursed loans.
Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 External Loan Services to Reserves Ratio

20%
18.0% 17.9%
18% 16.8%
16%

14%

12%

10% 9.0%
7.4% 7.8%
8%

6%

4%

2%

0%
2007 2008 2009 2010 2011* 2012**

Notes:
External Loan Services = Ext. Loan Principal + Ext. Loan Interest Payments
* provisional, based on assumption: 1) ext loan services nominal = realizations as of end of period ,
2) reserves nominal = averages of reserves nominal from the beginning of year until the end of
period.

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Debt to GDP Ratio,
Some Countries & The Changes
Indonesian debt per capita is among the lowest compared to developed
countries with the fastest/biggest decrease
Public Debt, 2011 Public Debt, changes 2003-2011
(in % of GDP) (in % of GDP)

Chile Indonesia
Australia Turkey
Indonesia Philippines
Colombia India
South Africa Colombia
Turkey Chile
Thailand Thailand
Philippines Brazil
Malaysia South Africa
Poland Italy
India Poland
Brazil Malaysia
United Kingdom Germany
Germany Japan
United States United States
Italy Australia
Japan United Kingdom
0 40 80 120 160 200 240 -60 -40 -20 0 20 40 60 80 100 120

Source: Bloomberg
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Debt per Capita of Some Countries
 China and India have higher ratios despite the more populations compared to Indonesia.
 Brazil and Italy with ‘investment grade’ rating have higher ratios compared to Indonesia of ‘non-
investment grade’ rating

in US$ in US$
7000 120000

6000
100000

5000
80000

4000
60000
3000

40000
2000

20000
1000

0 0
2007 2008 2009 2010 2011

Brazil Poland Chile India Philippines Indonesia Japan (rhs)

Source: Bloomberg
Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Debt per Capita,
Some Countries & The Changes
Indonesian debt per capita is among the lowest and it is considered to
fluctuate insignificantly
Public Debt per Capita, 2011 Public Debt per Capita, changes 2003-2011
(in US$) (in %)

Japan United Kingdom

United Kingdom Brazil
United States Malaysia
Brazil Colombia
Poland Poland
Malaysia India
Turkey Chile
South Africa Japan
Colombia United States
Thailand South Africa
Chile Thailand
Philippines Philippines
Indonesia Turkey
India Indonesia

0 40000 80000 120000 0 100 200 300 400 500

Source: Bloomberg
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Debt Risk Indicators,2007-2011

Notes:
*) The 2011 projection figures are based on realization per December 2011.
Source: Ministry of Finance
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Chapter 5

Costs of Borrowing
(Debt Services, Cost of Fund, Yield Curve,
External Debt’s Cost)

Kementerian
Ministry
Ministryofof
Keuangan
Finance
Finance–––Republic
Republik
Republicof
Indonesia
ofIndonesia
Indonesia
 Debt Services Realizations
Fiscal Year 2012
[ in billion Rupiah ]

Payment Realization
% to
Budget
Budget
Q-1 Q-2 Q-3 Q-4 Total

I. PRINCIPALS 197,104 50,078 34,187 35,208 54,012 173,485 88.02%

A. LOANS 51,826 8,484 16,778 8,142 17,824 51,228 98.85%
a. Domestic Loan 141 - 71 - 71 141 99.97%
b. External Loan 51,685 8,484 16,708 8,142 17,754 51,087 98.84%
B. GOVERNMENT SECURITIES 145,278 41,594 17,409 27,066 36,188 122,257 84.15%
1. Rupiah Denominated Securities 141,238 41,594 17,409 27,066 36,188 122,257 86.56%
a. Securities 124,570 31,770 16,989 26,653 35,283 110,695 88.86%
b. Islamic Securities 16,668 9,824 420 413 905 11,562 69.37%
2. Foreign Curr. Denominated Securities 4,040 - - - - - 0.00%
a. Securities 4,040 - - - - - 0.00%
b. Islamic Securities - - - - - - 0.00%

I. INTERESTS 117,785 26,868 22,346 26,713 24,949 100,874 85.64%

A. LOANS 16,151 2,072 4,913 2,236 5,200 14,420 89.28%
a. Domestic Loan 167 - 35 - 36 70 42.12%
b. External Loan 15,984 2,072 4,879 2,236 5,164 14,350 89.78%
B. GOVERNMENT SECURITIES 101,634 24,796 17,432 24,477 19,749 86,454 85.06%
1. Rupiah Denominated Securities 84,582 20,030 14,755 19,287 16,374 70,446 83.29%
a. Securities 76,165 18,092 13,183 16,884 15,075 63,234 83.02%
b. Islamic Securities 8,418 1,937 1,572 2,403 1,299 7,212 85.67%
2. Foreign Curr. Denominated Securities 17,052 4,766 2,677 5,190 3,375 16,009 93.88%
a. Securities 15,818 4,766 2,229 5,190 2,892 15,078 95.32%
b. Islamic Securities 1,234 - 448 0 483 931 75.43%
-
III. PRINCIPALS + INTEREST, TOTAL 314,890 76,945 56,533 61,921 78,961 274,360 87.13%

Kementerian
Ministry
Ministryofof
Keuangan
Finance
Finance–––Republic
Republik
Republicof
Indonesia
ofIndonesia
Indonesia
 Debt Services Realizations
Fiscal Year 2012 (Chart)

160,000 99% 100%

140,000 145,278

95%
120,000
122,257

100,000 89%
in billion Rupiah

101,634 90%

80,000 86,454
85%
84% 85%
60,000

51,826 51,228
40,000
80%

20,000
16,151 14,420
- 75%
A. LOAN B. SECURITIES A. LOAN B. SECURITIES
PRINCIPAL INTEREST

Budget Realization % (RHS)

Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Interest Payment Ratio

15% Cost of Funds is showing more efficient trend

13%
11%
11.3%

11.0%
9%

9.0%

8.9%

8.7%
7%

7.7%
10.5%

10.0%
9.0%
5%

8.5%

7.6%
7.2%
3%
1%
-1% 2007 2008 2009 2010 2011 2012*

to Revenues to Expenditures
[in billion IDR]
2007 2008 2009 2010 2011 2012*
Revenues and Grants 706,108 981,609 848,763 995,272 1,210,600 1,358,205
Expenditures 757,650 985,731 937,398 1,042,117 1,295,000 1,548,310
Interest Payments 79,806 88,430 93,782 88,383 93,200 117,785

Notes :
- Audited
* provisional, based on Revised Budget assumption
Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Interest Payments to Debt Total
[in trillion IDR] [Percentage ]
2,500 18%
16%
2,000 14%
12%
1,500
10%
8%
1,000 5.9% 5.8% 5.8% 6.0%
5.4% 5.3%
6%

500 4%
2%

- 0%
2007 2008 2009 2010 2011 2012*

Debt Interest Paymt. Ratio (RHS)

[in trillion IDR]

2007 2008 2009 2010 2011 2012*

Debt 1,389.41 1,636.74 1,590.66 1,676.85 1,808.95 1,975.42
Interest Paymt. 79.81 88.43 93.78 88.38 93.20 117.79
Notes :
- LKPP - Audited
*) provisional, based on Revised Budget assumption.
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Interest Payments Realization

100%
90%
80%
70%
68% 68% 68% 70% 72%
60%
85%
50%
40%
30%
20%
32% 32% 32% 30% 28%
10%
15%
0%
2007 2008 2009 2010 2011 2012*

Domestic Debt Interest Payment External Debt Interest Payment

[ in trillion IDR ]
2007 2008 2009 2010 2012* 2011
Nml % Nml % Nml % Nml % Nml % Nml %
Debt Interest Payment 79.80 100.00 88.43 100.00 93.78 100.00 88.38 100.00 93.20 100.00 117.79 100.00
a. Domestic Debt Interest Payment 54.10 67.79 59.90 67.74 63.76 67.98 61.4 69.47 79.60 85.41 84.75 71.95
b. External Debt Interest Payment 25.70 32.21 28.53 32.26 30.03 32.02 27.0 30.53 13.60 14.59 33.04 28.05
Notes :
- LKPP - Audited
*) provisional, based on Revised Budget assumption.
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Terms and Conditions of Loan from Multilateral

Multilateral

Description IBRD-WB IFAD IDB ADB-OCR

Loan Maturity 24.5 years 15-18 years 15-20 years 15-25 years
Grace Period 9 years 3 years 3-5 years 3-5 years
Repayment Period 15.5 years 12 years 11-15 years 12-20 years
Commitment Charge - - - 0.15%
Front End Fee 0.25% - - -
Service Charge - - - -
Interest Rate/ LIBOR + 0,40%
Mark-up ***) LIBOR + 1.0% (Fixed Spread) LIBOR (swap) + 1.25% *)
LIBOR + 0.48% (Variable IFAD Referenc e Rate
Spread) (Semester I 2012= 1.39%) 0.2% - 1.4%
ALM ≤ 13 years = Nil **)
13 years< ALM ≤ 16
years = 0.10 % p.a
Maturity Premium **)
ALM > 16 years = 0.20%
p.a
**)

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Terms and Conditions of Loan from Bilateral (Japan)

Bilateral
Jepang/ Japan (JICA)
General terms Prefential terms STEP
Description S t a nda rd O ption1 O ption2 S t a nda rd O ption1 O ption2 O ption3 S t a nda rd O ption

Loan Maturity 32 years 26 years 20 years 50 years 40 years 26 years 20 years 50 years 40 years

Grace Period 7 years 6 years 5 years 10 years 10 years 6 years 5 years 10 years 10 years

Repayment Period 25 years 20 years 15 years 40 years 30 years 20 years 15 years 40 years 30 years

Commitment Charge 0,1%

Front End Fee - - - - - - - - -

Service Charge - - - - - - - - -

Interest Rate
(for non c onsultant servic es) 1,40% 0,95% 0,80% 0,65% 0,55% 0,50% 0,40% 0,20% 0,10%
Interest Rate
(for c onsultant servic es) 0,01%

Maturity Premium

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Domestic Government Debt Securities Yield Curve
[%]

12

10

8 Tenor 28-Des-12 Des '11 Des '10 Des '09 Des '08
1Y 3,96 4,35 5,36 6,72 10,36
2Y 4,32 4,92 5,82 7,61 11,22
3Y 4,52 5,22 6,27 8,23 11,45
4Y 4,63 5,24 6,34 8,75 11,67
5Y 4,65 5,35 6,78 8,80 11,70
6 6Y 4,88 5,45 6,96 9,06 11,77
7Y 4,98 5,83 7,16 9,24 11,82
10Y 5,15 5,96 7,57 10,04 11,86
15Y 5,87 6,56 8,78 10,64 11,92
20Y 6,24 7,02 9,24 10,72 11,91
30Y 6,34 7,26 9,68 10,97 12,17
4
1Y 2Y 3Y 4Y 5Y 6Y 7Y 10Y 15Y 20Y 30Y

28 Des '12 Des '11 Des '10 Des '09 Des '08

Declining cost of fund of Domestic Government Securities reflects increasing market confidence as a
response of prudent fiscal policy and debt management.
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Indonesian Global Bond Yield Curve
[%]
12

10

31-Dec-08 31-Dec-09 31-Dec-10 30-Dec-11 28-Dec-12

1Y 1,416
4 2Y 2,707 1,421
31-Dec-08 3Y 2,991 1,647
4Y 2,55 3,079 1,965
31-Dec-09 5Y 8,642 4,188 3,169 3,374 2,141
6Y 9,057 4,387 3,608 3,515 2,448
31-Dec-10 7Y 9,925 4,886 3,931 3,899 2,666
2 8Y 5,107 4,146 3,955
9Y 9,385 5,255 4,468 2,826
30-Dec-11 10Y 5,346 4,516 3,97 2,902
20 Y 4,268
28-Dec-12 25 Y 9,662 6,731 5,954 5,044 4,297
30 Y 9,321 6,806 6,065 5,201 4,235
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Kementerian
Ministry
Ministryofof
Keuangan
Finance
Finance–––Republic
Republik
Republicof
Indonesia
ofIndonesia
42
Indonesia
 Chapter 6

Performance of Secondary Market

for Government Securities
(Trading Volume, Government Securities’s
Ownership Structure)

Kementerian
Ministry
Ministryofof
Keuangan
Finance
Finance–––Republic
Republik
Republicof
Indonesia
ofIndonesia
Indonesia
 Average Daily Trading of Domestic Government Securities
[in IDR Trillion] [Frequency]

14.0 700
Positive trend on average daily trading activity
13.0 shows increasing market liquidity
12.0 600

11.0

10.0 500

9.0

8.0 400

7.0

6.0 300

5.0

4.0 200

3.0

2.0 100

1.0

0.0 0
J FMAMJ J AS OND J FMAMJ J AS OND J FMAMJ J AS OND J FMAMJ J AS OND J FMAMJ J AS OND J FMAM J J AS OND
2007 2008 2009 2010 2011 2012
Volume Rata-Rata Volume per Tahun (Average Daily Volume per Year) Frekuensi (Frequency) - RHS

Kementerian
Ministry
Ministryofof
Keuangan
Finance
Finance–––Republic
Republik
Republicof
Indonesia
ofIndonesia
Indonesia
 Government Debt Securities Ownership

in IDR trillion

900
 More diversified investor base which demonstrated by 50.00%

increasing ownership from non-bank, foreign and retail

45.00%
800
investor.
 Increasing offshore ownership indicates better market 40.00%
700
confidence.
35.00%
600

30.00%
500

25.00%

400
20.00%

300
15.00%

200
10.00%

100 5.00%

0 -
Oct'05

October-12
Nov'09
Apr'09

Jan'11
May'06
Aug'04

Aug'11

Mar'12
Mar'05

Jun'10
Jul'07

Sep'08
Feb '08
Dec'06

NON-BANK BANK % Asing thd. Total - RHS

Note:
Non-Bank including Government institution
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Domestic Debt Government Securities Ownership

Dec '07 Dec'08 Dec'09 Dec'10 Des'11 Mar'12 June'12 Sept'12 Nov'12 28-Dec-12

BANK 268.65 258.75 254.36 217.27 265.03 293.16 297.98 317.43 304.02 299.66
State-owned Bank Recap 154.67 144.72 144.19 131.72 148.64 148.50 146.89 143.54 139.16
Private Bank Recap 72.63 61.67 59.98 54.93 67.33 84.61 81.85 88.14 88.42
Non-Recap Bank 35.37 45.17 42.40 26.26 42.84 52.24 57.98 72.20 66.40
BPD Recap 5.97 6.50 6.02 1.41 4.32 4.55 7.48 9.03 5.31
Shariate Bank 0.69 1.77 2.95 1.90 3.26 3.77 4.53 4.73

Institusi
14.86 23.01 22.50 17.42 7.84 3.12 20.36 4.63 6.23 3.07
Pemerintah / Government Institution
Bank Indonesia / Bank of Indonesia * 14.86 23.01 22.50 17.42 7.84 3.12 20.36 4.63 6.23 3.07

NON-BANK 194.24 243.93 304.89 406.53 450.75 464.30 472.85 490.73 524.30 517.53
Reksadana / Mutual Fund 26.33 33.11 45.22 51.16 47.22 46.95 48.60 47.01 45.87 43.19
Asuransi / Insurance 43.47 55.83 72.58 79.30 93.09 100.63 106.86 109.54 108.05 83.42
Asing / Foreign 78.16 87.61 108.00 195.76 222.86 224.72 224.42 240.98 269.85 270.52
Dana Pensiun / Pension Fund 25.50 32.98 37.50 36.75 34.39 33.93 34.56 34.35 35.29 56.46
Sekuritas / Securities 0.28 0.53 0.46 0.13 0.14 0.53 0.27 0.51 0.33 0.30
Lain-lain / Others 20.50 33.87 41.12 43.43 53.05 57.54 58.14 58.35 64.92 63.64

TOTAL 477.75 525.69 581.75 641.21 723.61 760.58 791.18 812.80 834.55 820.27
Notes:
• Nominal in trillion IDR;
• Includes only tradable domestic Government Debt Securities;
• Including Islamic Government Debt Securities
• Foreign ownership of Bank, Private Bank, Mutual Funds, and Foreign Securities;
• Others include Corporates, Retail, Foundation, etc;
*) Since February 8, 2008, including repo transaction of Government Securities to Bank of Indonesia.
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
45
 Domestic Debt Government Securities Ownership (%)
Dec '07 Dec'08 Dec'09 Dec'10 Des'11 Mar'12 June'12 Sept'12 Nov'12 28-Dec-12

BANK 56.23% 49.22% 43.72% 33.88% 36.63% 38.54% 37.66% 39.05% 36.43% 36.53%

Bank BUMN Rekap / State-owned Bank Recap 32.38% 27.53% 24.79% 20.54% 20.54% 19.52% 18.57% 17.66% 16.67%
Bank Swasta Rekap / Private Bank recap 15.20% 11.73% 10.31% 8.57% 9.30% 11.12% 10.35% 10.84% 10.59%
Bank Non Rekap / Non-recap Bank 7.40% 8.59% 7.29% 4.10% 5.92% 6.87% 7.33% 8.88% 7.96%
BPD Rekap / BPD recap 1.25% 1.24% 1.03% 0.22% 0.60% 0.60% 0.95% 1.11% 0.64%
Bank Syariah / Shariate Bank 0.13% 0.30% 0.46% 0.26% 0.43% 0.48% 0.56% 0.57%
Institusi
3.11% 4.38% 3.87% 2.72% 1.08% 0.41% 2.57% 0.57% 0.75% 0.37%
Pemerintah / Government Institution
Bank Indonesia / Bank of Indonesia * 3.11% 4.38% 3.87% 2.72% 1.08% 0.41% 2.57% 0.57% 0.75% 0.37%

NON-BANK 40.66% 46.40% 52.41% 63.40% 62.29% 61.05% 59.76% 60.38% 62.82% 63.09%

Reksadana / Mutual Fund 5.51% 6.30% 7.77% 7.98% 6.53% 6.17% 6.14% 5.78% 5.50% 5.27%
Asuransi / Insurance 9.10% 10.62% 12.48% 12.37% 12.86% 13.23% 13.51% 13.48% 12.95% 10.17%
Asing / Foreign 16.36% 16.66% 18.56% 30.53% 30.80% 29.55% 28.37% 29.65% 32.33% 32.98%
Dana Pensiun / Pension Fund 5.34% 6.27% 6.45% 5.73% 4.75% 4.46% 4.37% 4.23% 4.23% 6.88%
Sekuritas / Securities 0.06% 0.10% 0.08% 0.02% 0.02% 0.07% 0.03% 0.06% 0.04% 0.04%
Lain-lain / Others 4.29% 6.44% 7.07% 6.77% 7.33% 7.57% 7.35% 7.18% 7.78% 7.76%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Notes:
• Nominal in trillion IDR;
• Includes only tradable domestic Government Debt Securities;
• Including Islamic Government Debt Securities
• Foreign ownership of Bank, Private Bank, Mutual Funds, and Foreign Securities;
• Others include Corporates, Retail, Foundation, etc;
*) Since February 8, 2008, including repo transaction of Government Securities to Bank of Indonesia.
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
46
 Foreign Ownership of Domestic Government Securities
by Tenor
[Rp miliar]
Long end Government Debt Securities
300,000
dominates foreign holding which reached
by 72,84% as of December 31, 2012

250,000

200,000
71,63% 72,84%

150,000

100,000

16,22%
50,000 16,50%
3,18% 2,83%
8.97% 7,84%
0
December-10 December-11 May-12 September-12 October-12 November-12 28-Dec-12
Total 195,755 222,857 224,502 242,887 250,326 269,845 270,522
>5 131,232 140,762 142,470 169,691 179,654 193,294 197,035
>2-5 35,511 37,400 41,124 44,907 39,567 43,760 44,626
>1-2 9,077 18,252 15,596 3,549 8,489 8,591 7,650
0-1 19,935 26,443 25,311 24,740 22,615 24,200 21,211

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Spread over UST- Mar 17

800
MEX 17 BRAZ 17
Yield
DATE MEX 17 BRAZ 17 PHIL 17 INDO 17 UST 17 TURK 17
PHIL 17 INDO 17
Dec-11 2.46 2.34 2.89 3.34 0.90 4.79
TURK 17 Mar-12 2.13 1.87 2.73 2.94 1.04 4.19
Jun-12 1.80 1.83 2.34 3.07 0.71 3.66
600 Sep-12 1.46 1.26 1.66 2.04 0.53 2.78
Oct-12 1.42 1.28 1.47 2.06 0.62 2.68
Nov-12 1.41 1.31 1.34 2.04 0.51 2.32
21-Dec-12 1.41 1.26 1.32 2.01 0.61 2.28
24-Dec-12 1.41 1.25 1.30 1.99 0.62 2.26
25-Dec-12 1.41 1.25 1.32 2.00 0.62 2.26
26-Dec-12 1.40 1.25 1.29 1.98 0.61 2.26
400 27-Dec-12 1.40 1.23 1.29 1.99 0.59 2.25

200

0
27-Dec-11 27-Feb-12 27-Apr-12 27-Jun-12 27-Aug-12 27-Oct-12 27-Dec-12
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Spread over UST- Feb 22

600
PHIL 21 BRAZ 21

INDO 22 MEX 22 Date PHIL 21 BRAZ 21 UST 22 INDO 22 MEX 22 TURK 22

Mar-12 3.43 3.14 2.21 3.49 5.27
TURK 22 Jun-12 2.96 2.80 1.61 3.79 3.02 4.59
Sep-12 2.43 2.25 1.53 3.05 2.68 3.77
Oct-12 2.31 2.15 1.59 3.01 2.66 3.62
Nov-12 2.16 2.07 1.48 2.81 2.59 3.13
400 21-Dec-12 2.29 2.08 1.62 2.94 2.57 3.22
24-Dec-12 2.29 2.08 1.63 2.94 2.57 3.22
25-Dec-12 2.29 2.08 1.63 2.94 2.57 3.23
26-Dec-12 2.29 2.08 1.61 2.94 2.56 3.23
27-Dec-12 2.28 2.08 1.59 2.93 2.56 3.21

200

-
19-Mar-12 19-May-12 19-Jul-12 19-Sep-12 19-Nov-12
Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Spread over UST-Feb 42

600
MEX 40 BRAZ 41
DATE MEX 40 BRAZ 41 TURK 41 COLM 41 INDO 42 UST 42

TURK 41 COLM 41 Mar-12 4.73 4.64 6.07 4.65 4.93 3.34

Jun-12 4.30 4.24 5.61 4.23 4.96 2.75
Sep-12 4.01 3.96 4.91 4.00 4.40 2.80
INDO 42 Oct-12 4.00 3.93 4.83 3.95 4.33 2.83
Nov-12 3.95 3.76 4.26 3.87 4.20 2.77
400 21-Dec-12 3.96 3.80 4.44 3.91 4.26 2.89
24-Dec-12 3.97 3.80 4.44 3.91 4.25 2.90
25-Dec-12 3.97 3.80 4.44 3.91 4.26 2.90
26-Dec-12 3.97 3.80 4.44 3.91 4.26 2.88
27-Dec-12 3.97 3.80 4.44 3.91 4.25 2.87

200

0
9-Feb-12 9-Apr-12 9-Jun-12 9-Aug-12 9-Oct-12 9-Dec-12

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Chapter 7

Rating, Government Guarantee, Supreme

Audit Agency Opinion (BPK), Conclusion

Kementerian
Ministry
Ministryofof
Keuangan
Finance
Finance–––Republic
Republik
Republicof
Indonesia
ofIndonesia
Indonesia
 Credit Rating of Indonesia

 Rating Improvement Determinants

 The Indonesian economy resilience in the face of global crisis in 2007-2008
 Political stability and law enforcement improvement
 Prudential government debt management:
 Decrease of debt to GDP ratio
 Timeliness of debt obligations payment
 Increasing investors / lenders confidence

 Sovereign Credit Rating (Fitch, Moody’s, S&P)

 Improvement rating one notch down the potential performance yield of new foreign
currency of government securities approximately 75-115bps
 Country Risk Classification (CRC)
 Credit risk measurement of a country by OECD member countries
 Range 0-7 (high risk)
 Decrease 1 level CRC potentially reduce the cost of foreign loans, especially new export
credit facility of about 130-150bps

Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Indonesia Credit Rating Performance (1)

Indonesia Rating Performance 1999 - 2012

On October 18, 2012, R&I
Tahun/ Rating upgraded Indonesia’s
Sovereign Credit Rating from
year S&P Fitch Moody's R&I JCRA CRC BB+ to BBB-
1999 CCC+ B- B3 B- - 6 on March 30, 2012, OECD
2000 B- B- B3 B- - 6 upgraded CRC of Indonesia
from classification 4 to 3
2001 CCC B- B3 B- - 6
on January 18, 2012, Moody's
2002 CCC+ B B3 B- B 6 upgraded Indonesia's Credit
Rating from Ba1 to Baa3
2003 B B+ B2 B- B 6
2004 B+ B+ B2 B- B+ 6
2005 B+ BB- B2 BB- B+ 5
2006 BB- BB- B1 BB- BB- 5
2007 BB- BB- Ba3 BB+ BB- 5
2008 BB- BB Ba3 BB+ BB- 5
2009 BB- BB Ba2 BB+ BB+ 5
2010 BB BB+ Ba2 BB+ BBB- 4
2011 BB+ BBB- Ba1 BB+ BBB- 4
2012 BB+ BBB- Baa3 BBB- BBB- 3
Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Indonesia Credit Rating Performance (2)

BBB+14 Baa1
14.00
Investment

Lelang penerbitan SUN secara

Investment
Krisis ekonomi reguler, program Buyback,
grade

BBB13 1998 Debt Swtiching, & Baa2

13.00

grade
Rekapitalisasi Reprofiling VR & HB, Asset- diversivikasi instrumen
Lelang penerbitan SUN Lelang penerbitan SUN
Perbankan Bond Swap, & penerbitan
secara reguler, program secara reguler, program
BBB-12 SUN
jk panjang
Buyback Buyback, & Debt Swtiching Baa3
12.00

BB+11 Ba1
11.00

BB 10 Ba2
10.00

BB- 9 Ba3
9.00

B+ 8 B1
8.00

Non Investment grade

Non Investment grade

B 7 Moodys’s menaikan rating ke Baa3 B2

7.00
per 18 Januari 2012
B- 6 B3
6.00
S&P’s menaikan rating ke BB+
CCC+5 per 8 April 2011 Caa1
5.00

CCC 4 S&P sempat Moodys’s menaikan rating ke Ba1

Caa2
4.00
menurunkan rating ke per 17 Januari 2011
CCC- 3 Selective Default
namun direvisi
Caa3
3.00
kembali 2 hari
CC 2 kemudian
Fitch’s menaikan rating ke BBB-
Ca
2.00
per 15 Desember 2011
R/C 1 C
1.00

SD/DDD- -
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Moody's (RHS) S&P's Fitch's S&P's Fitch's Moody's (RHS)

Kementerian
Kementerian
Ministry Keuangan
of Finance
Keuangan – Republik
– Republic
– Republik Indonesia
of Indonesia
 Indonesia Sovereign Credit Rating Performance (1)

 On March 30th 2012, OECD upgraded Indonesia's Country Risk Classification (CRC) from
classification 4 to 3, along with Thailand, Uruguay, South Africa, Rusia, India, Brasil and Peru.
 On January 18th 2012, Moody's Investors Services upgraded Indonesia's Sovereign Credit
Rating from Ba1 to Baa3 with stable outlook. Highlights from Moody's are:
 “Some of the key drivers of the decision are Moody's anticipation that government financial
metrics will remain in line with Baa peers, the demonstrated resilience of Indonesia's economic
growth to large external shocks, the presence of policy buffers and tools that address financial
vulnerabilities and a healthier banking system capable of withstanding stress“
 On December 15th 2011, Fitch upgraded Indonesia Credit Rating from BB+ to BBB- with
stable outlook which placed Indonesia into Investment Grade. Highlights from Fitch are:
 “The upgrades reflect the country's strong and resilient economic growth, low and declining public
debt ratios, strengthened external liquidity and a prudent overall macro policy framework“
 On April 8th 2011, S&P upgraded Indonesia Credit Rating from BB to BB+ with positive
outlook. Highlights from S&P are:
 “The main factor supporting this decision is continuing improvements in the government's balance
sheet and external liquidity, against a backdrop of a resilient economic performance and cautious
fiscal management”

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
 Indonesia Sovereign Credit Rating Performance (2)

 On October 18, 2012, R&I upgrades Sovereign Credit Rating of the Republic of
Indonesia to BBB- /stable outlook. R & I stated key factors supporting the
decision of upgrading the sovereign credit rating of Indonesia (1) Indonesian
economic resilience in achieving high growth amid the global economic downturn
(2) conservative fiscal management (3) Government’s debt burden is kept low
and (4 ) financial system has become more stable.

 On July 13th 2010 JCRA upgraded Indonesia’s Credit Rating from BB+ to BBB-
which placed Indonesia into Investment Grade. Highlights from JCRA are:
 “JCRA explained that the upgrade reflects (i) enhanced political and social stability
along with the progress in democratization and decentralization, (ii) sustainable
economic growth outlook underpinned by solid domestic demand, (iii) alleviated
public debt burden as a result of prudent fiscal management, (iv) reinforced resilience
to external shocks stemming from the foreign reserves accumulation and an improved
capacity for external debt management and (v) efforts made by the second Yudhoyono
administration to outline the framework to deal with structural issues such as
infrastructure development.”

Kementerian
Ministry of Finance
Keuangan
– Republic
– Republik
of Indonesia
Government Guarantee Outstanding and Budget Allocation

Budget Allocation (Billion Rupiah)

No of Project Guaranteed
No Government Guarantee Program Guarantee Amount
Letter (Billion Rupiah) 2008 2009 2010 2011 2012 2013

1 Fast track Program Phase 1 (FTP 1) 34 74,497.77 283.0 1,000.0 1,000.0 889.0 623.3 611.2

Program Percepatan Penyediaan Air Minum

2 3 50.20 - - 50.0 15.0 10.0 35.0
(Clean Water Avaliability Program)
Penjaminan Proyek Kerjasama Pemerintah dan
3 1 30,944.00 - - - - - 59.8
Swasta (Public Private Partnership Project)
4 Fast track Program Phase 2 (FTP 2) 4 20,656.13 - - - - -

TOTAL 126,148.10 283.0 1,000.0 1,050.0 904.0 633.3 706.0

Notes:
- As of December 31, 2012
- Rate assumptions : Rp. 9670,- per USD

Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 BPK Opinion on Government Financial Report

 Indonesian Supreme Audit Agency (BPK) gives Unqualified

Opinion to the Financial Report of all accounts related to
debt management and administration (BA-999.01)
 Debt management’s accountability continues to improve
 Internal
control system
 Compliance to the existing regulation

Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 Conclusion

 Fiscal deficit requires financing. Debt has long been recognized as the best policy
tool to support liquidity and to refinance matured debt
 Debt outstanding accounts growth in nominal term but debt as a share of GDP
keeps to record a significant decrease and, as our fiscal rule mandates, it is still
in a healthy level
 Ultimate goal of debt management is to acquire fund with low cost & risk, with
long term maturity, untied to any political agenda
 Continuing to achieve sound fiscal policy and debt management:
 Looking at another developing and even advanced countries’ performance, debt
indicator of Indonesia stays better and is continuing to be so
 Rules and regulations are already installed in place to guarantee accountability and
transparency of debt management
 Central Government’s Financial Report 2008, 2009, 2010, and 2011 has been judged as
unqualified (Wajar Tanpa Pengecualian/WTP) by the State Audit Board (BPK)
 Global crisis has not changed investor expectation and market confidence to Indonesia.
Rating upgrade especially since 2005, and on March 12th 2010 S&P upgraded Indonesia
rating from BB- to BB the midst of global financial crisis and of rating downgrading of
other economies proves at least two things: positive expectation of the economy in the
short-to-medium run and the credibility of fiscal policy. By JCRA and Fitch, Indonesia
has been placed into Investment Grade category

Kementerian
Ministry of Finance
Ministry Keuangan
of – Republic
Finance –– Republik
of Indonesia
Republic of Indonesia
 © 2013
Directorate of Evaluation, Accounting and Settlement
Directorate General of Debt Management
Ministry of Finance of The Republic of Indonesia
Jalan DR. Wahidin Raya No. 1 Jakarta
Phone. +62-21-3864778; Fax. +62-21-3843712
www.djpu.depkeu.go.id
CP: achmadfauzi@depkeu.go.id/ wawan.hernawan@depkeu.go.id