Professional Documents
Culture Documents
May 2023
About Investor Relations Unit of the Republic of Indonesia
Investor Relations Unit (IRU) of the Republic of Indonesia has been established as a joint effort between Coordinating Ministry of
Economic Affairs, Ministry of Finance and Bank Indonesia since 2005. The main objective of IRU is to actively communicate
Indonesian economic policy and to address concerns of investors, especially financial market investors.
As an important part of its communication measures, IRU maintains a website under Bank Indonesia website which is administered
by International Department of Bank Indonesia. However, day-to-day activities of IRU are supported by all relevant government
agencies, among others: Bank Indonesia, Ministry of Finance, Coordinating Ministry for Economic Affairs, Ministry of Investment,
Financial Services Authority, Ministry of State-Owned Enterprises, and The Committee for Acceleration of Priority Infrastructure
Delivery.
IRU also convenes an investor conference call on a monthly basis, answers questions through email, telephone and may arrange
direct visit of banks/financial institutions to Bank Indonesia and other relevant government offices.
Published by Investor Relations Unit – Republic of Indonesia
Website: http://www.bi.go.id/en/iru/default.aspx
Contact:
Rosita Dewi (International Department - Bank Indonesia, Ph.: +6221 2981 8232)
Thasya Pauline (Deputy Ministry for Macroeconomic and Finance Coordinator - Coordinating Ministry for Economic Affairs, Ph. +6221 352 1843)
Putri Rizki Yulianti (Fiscal Policy Office - Ministry of Finance, Ph.: +6221 345 0012)
Subhan Noor (Directorate General of Budget Financing and Risk Management - Ministry of Finance, Ph.: +6221 351 0714)
E-mail: contactIRU-DL@bi.go.id
2
Overview
1 4
External Factor:
Economic Recovery Program and Its Updates Improved External Resilience
3
Section 1
Economic Recovery Program and Its Updates
Handling of Covid-19 and National Economic Recovery
In the midst of being exposed to various global challenges, the government has succeeded in ensuring that the economic
recovery continues while maintaining an effective handling of the pandemic.
PEN PROGRAM
as a response to the
handling of the Covid- PRIORITY SUPPORT
PEN 2020 HANDLING SOCIAL MSMEs BUSINESS
19 pandemic and aims PROTECTION
PROGRAM
HEALTH AND CORPORATE INCENTIVES
575.9 to handle health and
62.7 Trilion 216.6 Trilion
65.2 Trilion 58.4 Trilion
Trilion support the economy 173.0 Trilion
Focus: Continuation of Covid handling Focus: maintaining the purchasing Focus: Job Creation and Increased Productivity
and acceleration/expansion of power of the poor and vulnerable, as
vaccinations well as tackling extreme poverty
PC-PEN is an embodiment of policies that are extraordinary, responsive and adaptive in responding to the dynamics of crisis
and risk of uncertainty.
Under the directions of the President, the combination of brakes and accelerator proved
1 to be optimal. Dare to take risks, but measured.
Utilization of digital technology can increase the accuracy of program targets For
5 example: KPCPEN One Data System, Care to Protect, Telemedicine Services, PKL-WN
Applications, etc.
6 The pandemic creates innovation i.e. manufacture of Red and White Vaccines.
GDP Growth (%YoY) S&P Global Indonesia Total Investment CCI & Retail Sales
60 Manufacturing PMI (DDI+FDI) Rp Trillion
10 150 20,0
5,03 Expansion >50 52,7 350 328,9
5 55 130 10,0
300 0,0
50 110
0 250
-10,0
45 200
-5 90 -20,0
40 150
-10 100 70 -30,0
35
Aug-20
Aug-21
Aug-22
Oct-20
Oct-21
Oct-22
Apr-20
Apr-21
Apr-22
Apr-23
Jan-20
Jan-21
Jan-22
Jan-23
20
21
22
20
20
Feb- 21
21
Feb- 22
22
23
Jun-20
Jun-21
Jun-22
Jul-20
Jul-21
Jul-22
-20
-21
-22
Dec-20
Dec-21
Dec-22
Mar-20
Mar-21
Mar-22
Mar-23
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Contraction <50 50
Nov-
Nov-
Nov-
Feb-
Sep-
Sep-
Sep-
Feb-
May
May
May
2019 2020 2021 2022 2023 30 0
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Consumer Confidence Index (CCI)
Total GDP 25
Retail Sales-g (rhs)
Nov-1 9
Nov-2 0
Nov-2 1
Nov-2 2
Household Consumption
May-19
May-20
May-21
May-22
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Jan -20
Jan -21
Jan -22
Jan -23
Jul-19
Jul-20
Jul-21
Jul-22
Sep-19
Sep-20
Sep-21
Sep-22
2019 2020 2021 20222023
GFCF
Current Account Trade Balance The Indonesian Rupiah Net Capital flow
and JCI
of GDP (%) (Billion USD) 12000 7500 (Million USD)
80,00 10,00 8000
12500
2,00 0,89 60,00 8,00 13000
7000 6000
4000
1,00 40,00 6,00 13500 6500 2000
14000 0
0,00 20,00 4,00 6000
-2000
14500
-1,00 0,00 2,00 15000 5500 -4000
-6000
-20,00 0,00 15500
-2,00 5000 -8000
-40,00 -2,00 16000 4500
-10000
-3,00 16500 -12000
-60,00 -4,00 1/1/2021 1/1/2022 1/1/2023
-4,00 17000 4000
1 5 9 1 5 9 1 5 9 1 5 9 1
1/16/202 0
5/16/202 0
9/16/202 0
1/16/202 1
5/16/202 1
9/16/202 1
1/16/202 2
5/16/202 2
9/16/202 2
1/16/202 3
5/16/202 3
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1
2019 2020 2021 2022 2023
2018 2019 2020 2021 20222023 Balance (Billion USD)
Export-g (%YoY)-rhs Equity Flow (ytd)
Import-g (%YoY)-rhs
IDR/U SD JCI-rhs Bond Flow (ytd)
Total
Sources: CEIC, BI, BPS, Bloomberg (as of 26 May 2023) 9
Pre - Employment Card to Boost Working Skill Program
Achievements Outcome
A. Improved Working Skills and Entrepreneurship Opportunity
The training to improve skills and competence
>45.1 mio
Verified applicant registered 87,2%
on the Kartu Prakerja database
56% 39,8%
Who previously unemployed are now getting jobs
Statistical Demography
Desa Bachelor 11%
18… 27% Kota
64%
Residency
Education
36% Diploma 4%
26… 34%
Age
High-School 49%
36… 21% “Kartu Prakerja is the most extensive
Middle-… 17%
46… 13% G2P (Goverment to Person) Program”
Elementary… 19%
>55 5%
Source: Project Management Officer
Source: Coordinating Ministry for Economic Affairs Program Kartu Prakerja, Dec 2022 10
From Semi-Social Assistance (Bansos) Scheme To Normal Scheme
In 2023, the Government will implement a normal scheme that focuses more on improving skills, through offline, online or mixed
training. Thus, the Pre-Employment Card is no longer semi-social assistance
SEMI-BANSOS NORMAL
SCHEME SCHEME*
The membership
requirements are the TRAINING MODE TRAINING MODE
same as before ONLINE ONLINE — MIX — OFFLINE
HOWEVER,
TRAINING BUDGET LIMIT TRAINING BUDGET LIMIT
SOCIAL ASSISTANCE MAX. Rp 1.000.000 MAX. 3.500.000
RECIPIENTS/
GOVERNMENT ASSISTANCE POST TRAINING INCENTIVES & SURVEY POST TRAINING INCENTIVES & SURVEY
ALLOWED 4 x Rp 600.000 & 3 x Rp 1 x Rp 600.000 & 2 x Rp
50.000 50.000
*AMOUNT OF AID AND TRAINING MODES HAVE BEEN DETERMINED IN KEPMENKO 251/2022 DATED * TOTAL TARGET RECIPIENTS: 1,000,000 PEOPLE
DECEMBER 2, 2022 • The allocated budget for FY 2023 is 2.67 T for 595
thousand beneficiaries
• So that an additional budget of 1.7 T is needed for
Regarding preparations for the implementation of the Normal Scheme, MPPKP has also coordinated with the 405 thousand beneficiaries
relevant Ministries/Institutions to involve higher education institutions and K/L Training Institutions that have
the potential to join the Pre-Employment Card Program
Source: Coordinating Ministry for Economic Affairs 11
DIGITIZATION OF MSMEs: MSMEs LEVEL UP
Raw Material
Digital Infrastructure
Access
The government facilitates fiscal incentives to create a conducive investment climate, especially for industry players. Through increased investment, it is
hoped that it can strengthen the domestic industrial structure
BBB / Stable
Baa2 / Stable
17
Indonesia Gold Vision 2045: Become A Sovereign,
Advanced And Sustainable Country
Economic Transformation
Indonesia has been 22
trapped in MIT for 30 years
years (1993-2022 1. Science and Technology, Innovation and
Economic Productivity
Optimistic Scenario
2. Green Economy Implementation
Transformative Scenario 3. Digital Transformation
Baseline 4. Domestic and Global Economic Integration
5. Cities as Centers of Economic Growth
2019/2020
Become Upper
Middle Income 12.233
Country
8.804
6.305
4.546
3.377
Current Conditions:
Grand Strategy
Solid Economic Fundamentals
q Government and Society Prepare to Live
With COVID-19
q Indonesia's economy is
growing strong and has q Fiscal Policy as Shock-Absorber
reached pre-pandemic
Goal
q Price Stabilisation
levels
q Population mobility is q Omnibus Law on the Job Creation Act,
including IKN development
starting to increase, in line
with the controlled Covid- q Downstreaming and industrialization of
19 cases
natural resources Achieving
q Optimization of clean energy sources and Sustainable
q Leading indicators indicate a green economy
Economic
convincing economic q Legal, social, political and economic Development
outlook protection for the people
q Resilient external sector
q MSME’S LEVEL UP
21
Indonesian Digital Economy Development Framework
Concept (2021-2030)
VISION
Become a Digital Economy Powerhouse to Realize
Inclusive, Connected and Sustainable Economic Growth
The contribution of POTENTIAL ACHIEVEMENTS 2030
the Internet Economy The e-Commerce 35 Million MSMEs 250 million 2 times the worker
reaches IDR 2,711 market reaches IDR digitized digital literacy productivity ratio vs. cost
trillion 1,815 trillion GOAL
Increase Efficiency & Creating Encouraging Creating Achieving Digital
Productivity Jobs Innovation Inclusivity Economy
STRATEGY Sovereignty
3 MAIN PILLAR 4 5 6
1 2
Human Research, innovation & Data Governance Funding &
Infrastructure Policies/Regulations
Resources Business Development & Cybersecurity Investment
Digital Economy Development Program
Agriculture & tourism and
PRIORITY Industry 4.0 Trade Education Finance Health MSME
Fisheries creative economy
PRODUCTION
JOB CREATION
LAW
Increased
CONSUMPTION Increased
Purchasing
Power Income
HOUSEHOLD
PROGRESS OF THE JOB CREATION LAW Clusters in the Job Creation Law
With the Omnibus Law method, 79 laws were revised 1. Improving the Investment Ecosystem and Business Activities
and simplified to become the Job Creation Law (Law 2. Employment
3. Ease, Protection, and Empowerment of Cooperatives and MSME
Number 11 2020) was promulgated 4. Ease of Business
on November 2, 2020 5. Research and Innovation Support
6. Land Procurement
7. Economic Zone
8. Central Government Investment and Acceleration of National
Derivative regulations of 54 Government Strategic
Regulations/Presidential Regulations 9. Projects Implementation of Government Administration
10. Imposition of Sanctions
a) Revising Law 12/2011 to accommodate the Omnibus Law
The decision of the Constitutional Court on method
November 25, 2021 b) Change the Job Creation Law based on the revision of Law
12/2011 within two years
c) Review the substances that objection to the community
On June 16, 2022, Law No. 13 of 2022 concerning The subject matter in the revision includes:
Amendments to Law No. 12 of 2011 concerning the a) Omnibus method;
Establishment of Legislation b) Strengthen community involvement and meaningful participation;
c) Regulatory digitalization
d) Improve the technical error of writing in the draft law either
that has been agreed upon or after the President receives the
• The government prepares improvements to the job bill
creation law following the decision of the Constitutional
Court, which involves the technical formation of the job • The Job Creation Law and its implementing regulations are still in effect
creation law but does not change its substance. and no material on the Law has been annulled by the Constitutional Court.
• Preparation of academic manuscripts and draft law • Thus, the implementation of the Job Creation Law, which concerns, among
manuscripts others, Business Licensing and OSS, Employment including provincial and
• It has expected to be completed in 2022. district/city minimum wages, and facilities for MSMEs, still applies.
Source: Coordinating Ministry for Economic Affairs 24
The Job Creation Law Encourages Employment and Facilitates
New Business Opening While Recovering the Post-Pandemic
Economy
Has simplified into
Under the Omnibus Law, Job 186 Article
77 Indonesian Laws Creation
have been revised dan 15 chapter
Law
through a single law
which regulates various
sectors.
Investment Ecosystem
11 Cluster
and Business Activities Research and Government Investment &
Innovation National Strategic Project
Business Licensing Land Acquisition (PSN)
Public Administration
Employment Economic Zones
Imposition of
SME and Cooperatives Ease of Doing Business
Sanctions
*The UUCK has been in effect since its promulgation on November 2, 2020. The Constitutional
Court Decision No. 91/PUU XVIII/2020 dated November 25, 2021 which states that the Law of Job
Creation is unconstitutional with the condition: remains in effect operational but must be formally
revised within 2 years. The issuance of Ministerial Regulations/Regional Regulations/Regional
Head Regulations which are technical in nature, operational can still be carried out, and the OSS
System will continue to run as should be .
Source: Ministry of Investment (BKPM) 25
Perppu No. 2 of 2022 Concerning Job Creation Law Is An Improvement
of The Previous Regulation
Constitutional Court Follow-up Emergency Regulation
Decision 1. Setting the omnibus method in the It is urgently needed to anticipate
q The Constitutional Court (MK) Law on the Formation of Legislation global and domestic conditions.
stated that the Job Creation (Law Number 13 of 2022)
law was conditionally 2. Improvements to the Job Creation PERPPU NO. 2 OF 2022
unconstitutional. Law: (30 December 2022)
q The Job Creation law is still • Use of the omnibus method
valid and asked the The contents of the Job Creation
• Meaningful increase in Perppu are generally the same as
government to complete the participation
revision within two years. the contents of the Job Creation
• Substantial study results: Law, however there are some major
employment, land, environment improvement to the content
and base
Several Major Improvement are Related To Employment Regulation, Halal Certification, and Water Resource Management
The Job Creation Law seeks to provide legal certainty and ease with the existence of standards, particularly in
relation to business licensing requirements and processes. It is hoped that the issuance of the UUCK will
contribute to improving the investment ecosystem and ease of doing business, as well as ensuring worker
protection.
Nov 2020 Feb 2022 Agustus 2021 September 2021 November 2021 Desember 2022
~
Issued Issued Implemented Start Decision Issued
20 November 2020 2 Februari 2021 9 Agustus 2021 13 September 2021 25 November 2021 30 Desember 2022
45 Government Pemerintah Based on a letter from the Cabinet Secretary No: The Indonesian
Law No. 11 of government issued
Regulations and Indonesia B.0304/Seskab/Ekon/09/2021. The Coordinating Ministry
2010 on Job
4 Presidential meluncurkan for Economic Affairs coordinates a thorough evaluation of Government
Creation Regulation No. 2 of
Regulations OSS-RBA the regulations for implementing the OSS RBA
derived from the 2022 concerning Job
Job Creation Creation
Law Evaluation of PP 5/2021 includes:
1. Completion of KBLI in stages and without support;
2. Revision regarding the arrangement in the torso; Issuance of Job
3. Sectoral provisions; and Creation Perpu as
q Government 4. Requirements and obligations of each KBLI. an Implementation
Regulation No. 5 of of MK Decision
2021 concerning Number 91/PUU-
Implementation of The Judicial Review of the UUCK in 2021 XVIII/2020P and
Risk-Based Business will result in legal uncertainty for the provides legal
Licensing business world legal certainty to
the business world
27
The Government Focuses On Regulations And Procedures
For Ease of Doing Business
Improvement of regulations in the context of structural reforms to the Job Creation Law and
its derivative regulations can provide legal certainty to business actors.
Assistance in
conformity Better and
OSS RBA evaluation smoother
Feb'15
Feb-16
Feb-17
Feb-18
Feb-19
Feb-20
Feb-21
Feb-22
System between Business
Regulation and Licensing Services
Source: Coordinating Ministry for Economic Affairs
System 28
More Business Fields Are Open for Foreign Investment
515 Attractive
regulation enacted)
(Article 15 Pres. Regulation
Competitive
Business Restriction Encouraging the Development
oriented of Priority Business Fields
Mandate of Law Number 11 of 2020 concerning Job Creation Article 77 Number 2
Source: Ministry of Investment (BKPM) (Amending Law Number 25 of 2007 concerning Investment Article 12) 29
Positive Investment List:
Improving the Investment Ecosystem in Indonesia
Changes in the licensing process and expansion of business fields for investment will be a game changer in accelerating investment and opening new jobs
Attachment II
Business Lines Reserved for or Required Business Lines Allocated for or
for Partnerships With Cooperatives and Required for Partnerships With
SME Cooperatives and SME
145 Business Fields/KBLI 182 KBLI in 106 Business Groups
Attachment III
Business Fields Opened with Business Fields Opened with
Conditions Conditions
350 Business Fields 37 Business Fields
Source: Ministry of Investment (BKPM) 31
Investment Focus Sectors
BKPM Promotion
Strategy 2 Encouraging Equitable Investment outside Java
The increase in
Total Investment
Realization Year 2015 to
47,3% Investment Realization investment targets from
Target Year 2020 to 2024 President Jokowi is
2019 expected to come from
Rp. 3,381.9 T Rp. 4,983.2 T
quality investments, such
as processing industries
that provide added value
Source: Ministry of Investment (BKPM) 35
Risk-Based Licensing Approach
Basic Requirement for Risk Based Business Licensing Business Licensing to Support
Business Licensing (KBLI) Business Activity (PB UMKU)
Prior to Law After Law • Risk-Based Business Licensing based - Previously (OSS 1.1) was known as
on KBLI regulated in PP 5/2021. Commercial/Operational License
11/2020 11/2020 - PB UMKU services are carried out entirely
• The fulfillment of provisions,
Suitability of Space requirements and obligations is based through the OSS system
Location Permit Utilization Activities on the Sector PP, Presidential - PB UMKU is in the process of finalizing the
(KKPR) Regulation, and Permen/Perban* system with Line Ministries and there is an
derivatives of PP 5/2021. agreement:
Environmental Environmental
• if the nomenclature and services have
Permit approval
been accommodated in the line ministries
Building Permit
system, first the system integration will be
(IMB) and Building Building Approval
carried out,
Function Certificate (PBG) and SLF
• however, if it has not been
(SLF)
accommodated by the line ministries
system, the priority is immediately
planted in the OSS system.
*) Various requirements are regulated in 22 Candy/Bandages that must be accommodated and planted in the OSS system
98 City
1,207.2 Trilion
DDI
Rp (Rp 552.8 T) 45.8%
(YoY : 23.6%)
(YoY : 34.0%)
Achieving Target of 1200 T FDI
(100%) from President (Rp 654.4 T) 54.2%
(YoY : 44.2%)
OUTSIDE JAVA
Indonesian Labor
(Rp 636.3 T) 52.7%
Absorption:
(YoY :
1,305,001
35.9%)
JAVA
people
(Rp 570.9 T) 47.3%
(YoY : 31.9%)
Japan 3,6
Malaysia 3,3
45
All National Strategic Projects have been given a special facility to ease
each of the project’s implementation
as stipulated in the Pres. Regulation No. 109 /2020
PSN Facility
Procurement acceleration
Est. Total
Investment Value
USD 383,09 Billion*
State Budget
13%
20%
SOE
67% Budget
Private
* Include potential tennant
investment in Industrial Estate
* Est. 1USD=15.000 IDR
47
Highlighted PSN Projects which aligned with recent National ESG
(Environment – Social – Governance) Agenda (1/2)
Electricity Program with focus on Renewables
Electricity Program
22 National Rooftop Solar Power Plant
48
Highlighted PSN Projects which aligned with recent National ESG
(Environment – Social – Governance) Agenda (2/2)
EV Battery end-to-end Development Plant
In the next five years, the President's direction is that the government wants to focus on the
downstream industry of nickel ore, considering that Indonesia has the largest reserves in the
world.
2. PT Vale Indonesia
1. Nickel Smelter in East
Integrated Smelter
Halmahera PT Indonesia Battery
Development Project in
Corporation in East Halmahera
Pomala
49
Highlighted PSN Projects which provide substantial benefit to private investor
- Special Economic Zones Development (KEK) on 18 Location in Indonesia
50
Highlighted PSN Projects which provide substantial benefit to private investor
– Various facilities and Modalities for SEZ investors
51
Various initiatives to boost private sector participation in Infrastructure sector
especially for National Strategic Projects
1 2 3 4
52
Institutional reforms to establish a conducive PPP
ecosystem…
§ Coordinating Ministry of Economic Affairs in partnership with The World Bank and
DFAT- Australia has formulated Piloting Project study (Demo Project) for Land Value
Capture initiatives in 5 Cities
Profile of PT SMI
• PT SMI is a SOEs’ non-bank financial institution with 100% of its shares owned by the
Indonesian government.
• The first financial institution in Southeast Asia accredited by Green Climate Fund (GFC
SDGs Initiative
• The platform was launched in October 2018
• The Pipeline Projects comprise public transportation sector, health care, renewable
energy, tourism and drinking water supply system
Impact toward SDGs: Increase funds availability for infrastructure projects and project
appropriateness.
367,4 376,9
324,7
258,7 270,1
MAIN TARGET OF SEZS 181,2
The government constitutes the Increased Use of Domestic Products (P3DN) National Team
P3DN Team tasks:
a. coordinate, supervise, and evaluate the implementation of Increased Use of Domestic Products (P3DN) in
their respective environments;
b. provide a final interpretation of the dispute of the TKDN value between the producer of the goods/services
provider and the goods/services procurement team;
c. Other tasks and liaisons related to P3DN
63
Improving National Logistics System Resiliency: “Key Priorities In
Encouraging The Investment”
The government established an integrated logistics system through The National Logistic System Development Policy (SISLOGNAS). This system aims to
facilitate the flow of goods to fulfill the community’s basic needs and increase the competitiveness of national products.
Key Drivers: Logistic Action Plan
LOGISTICS PROGRAM Commodity-based improvement framework Transportation Infrastructureà
FOR 2022-2024
1 There are ±90 projects of infrastructure
1. Specify a specific commodity. development spread across Indonesia, such
2. Identify demand patterns, supply patterns and logistics costs. as toll roads, ports, airports and railways, to
Increasing national logistics 3. Set logistics efficiency targets for these commodities, for example: support the improvement of the logistics
efficiency, focusing on food and a. Lead time for domestic goods delivery; process
b. Lead time at the port for import-export goods.
health products Logistics Service Providerà Through
Government 5/2021, of the total 81 standard
Strengthen Key-Enabler
This focus aims to ensure the 2 1. Mapping and collaborating stakeholders and off-takers to implement the
classifications of business field in overall
logistics sectors, 72 (around 89%) required
availability and reliability of logistics action plans.
services to support the smooth NO LICENSE but only identification business
2. Establish a responsible organization to ensure the implementation of
number and/or standard certificate.
distribution of goods at the district action plans to support the achievement of logistics efficiency targets.
Furthermore, through Presidential Regulation
and city levels. 10 /2021, there are relaxations toward
foreign investment requirements. In the
Increasing efficiency and
3 Organizing action plans based on 6 key drivers logistics sectors, the relaxations take form in
effectiveness of export/import Preparing action plans based on the six key drivers to achieve efficiency in
flows of national leading products the allowability of foreign investment equity
national logistics and the effectiveness of export/import flows. to fully own a business.
and imports of priority industrial
raw materials. ICTà NLE is a system to provide one-stop
6. Regulations, Rules and Legislation services for the transmission of data, trade
logistics documents, and secure and reliable
This focus aims to improve the 5. Human 3. Logistics information to serve G2G, G2B, and B2B
1. Main Competitiveness transactions for domestic and international
smooth flow of exports and imports, Resource 4. ICT Service
both goods and documents, to Managemen Provider Commodity and Social trade
increase Indonesian products' t welfare Human Resource Managementà
Some programs include (a) The
competitiveness in the global market. 2. Transportation Infrastructure Sources: RPJMN 2020-2024; Presidential
establishment of the National Occupational
Regulation No.26/2012 Concerning
Blueprint of National Logistics System Map for Logistics and Supply Chain (b)
Development Legalization of the Indonesian National
Occupation Competency Standards
64
Government Continues to Support the Development of
Downstream Industries
• Establishment of 3 • Increased capacity of the • Increased capacity of the • Increased capacity of the
Gasification Plants for DME Gasification Industry to meet Gasification Industry to meet gasification industry to meet
and/or Industry the demand for DME and the demand for DME and the demand for 19.81 million
• Import of LPG has decreased Industry Industry tons of Methanol for DME
by 3,51 million tons by DME • Establishment of 2 Coal to • Establishment of 2 Coal to and Industry
substitution SNG plants in Sumatra. SNG plants in Sumatra & 1 • Increased capacity
• Infrastructure and Product • Establishment of a bio-coal plant in Kalimantan. (optimization) in each Coal
Distribution Channel for Coal briquette factory and • Establishment of the Coal Downstream Industry
Upgrading Phase-1 has been implement the use of bio-coal Liquefaction Industry to • There has been an increase
built briquettes. substitute imported gasoline in value-added of around
• Establishment of Coke Factory • Coal Upgrading industry • Establishment of REE industry 40.7 million tons of coal in
for Metallurgy started operation. and Advanced Materials, Agri- the Coal Downstream
• Increased value-added of • Increased value-added of Industry, Materials from coal. Industry.
around 19.6 million tons of around 22.7 million tons of • Increased value-added of
coal in the Coal Downstream coal in the Coal Downstream around 28.7 million tons of
Industry. Industry. coal in the Coal Downstream
Industry.
Potential: Indonesia's Nickel Reserves Are Abundant Amount of Incentive for Battery-Based Electric Motorized Vehicles
90 to 150
Nickel Ore Battery
times
67
Economic Transformation from Primary Sector Industries
to Value-Added Industries
Investment Plan:
LG : Integrated Battery Industry US$9,8 Billion
CATL : Integrated Battery Industry US$5,2 Billion
Foxconn : Electric Battery Industry, Electric Vehicle Industry
(4wheel, 2wheel, E-Bus), and Supporting Industry
(including charging station, R&D, and training) US$8 Billion
BritishVolt: Battery and electric vehicle industry, US$2 Billion
Investment Collaboration Investment plan in State-owned and National The food sector is able to
with State-Owned Enterprise collaboration with State- Private Sector investment in create many new jobs and also
and National Private Sector owned And National the natural gas processing create new economic growth
in the precursor, cathode, Private Sector in Coal industry into Methanol and areas.
and electric batteries gasification industry and Fertilizer in Fakfak, West
industries its derivatives Papua and Bojonegoro, East
Java
Recent Progress
1. The financing for land acquisition proposed by the
Minister of PUPR is IDR9.09 T until 2023, where in
2022, it was allocated through DIPA PUPR of IDR 500
M.
2. The Minister of Finance requested that the 2023
land procurement proposed by PUPR of IDR8.45 T
be accommodated through LMAN. • The IKN proposal as National Strategic Project (NSP) is
approved and included in the Regional Development
3. The DJA has approved the construction budget from Program as a Subprogram.
PUPR for 2022 of Rp. 5 trillion.
• The inclusion of IKN as NSP will refer to the Presidential
4. The need for the 2023 Construction budget is Decree No.63/2022 and the draft One Map - One
IDR23.6 T, including proposals from 5 Ministries / Planning - One
Agencies.
72
Development Stages of the National Capital City
• Critical basic • D e v elo p ing the next • Expand urban • To b e the leading city
infrastructure is p ha se of the city (e.g., development in the world in terms
completed and innovation a n d and of competitiveness
• operational (eg water, economic centre) complete connectivity • Top 10 livable cities in the
• energy, rail) for residents • C o mp lete d the tra nsfer be t we e n a n d within world
in the initial stages of cities
• Build central • Achieving net zero-
the IKN • FD I D estina tio n N o . 1 fo r
infrastructure (e.g. carbon emissions a n d
g o v ernme nt p rio rity e c o no mic sect o rs in 100% renewable
• Presidential Palace, centre Indonesia
energy at
• MPR/DPR Building) and
• D e ve l o p priority • To p 5 to p d estina tio ns in insta lle d c a p a city – the first
housing in the Main IKN economic Southeast Asia for city in the wo rld w ith >1
area global talent
sectors millio n inha b ita nts to
• Transfer of early-stage
• Implement a n • Encouraging re a ch this target
ASN (eg TNI, Polri, K/L
ASN) incentive system for sustainable utility
• Initiation of priority priority economic net wo rks b y
sectors implementing circular
• economic sectors
• Achieving the goals of e c o n o my enablers
the Sustainable • Developing a center
Development Goals for innovation a n d
(SDGs) talent development
Source: Coordinating Ministry for Economic Affairs 73
The Progress of New Capital City “Nusantara” Development
Composition of Financing for the Capital of the
The Important Role of Establishment of IKN Archipelago
• In February 2022, the Government of Indonesia enacted Law
Number 3 of 2022 concerning the State Capital. Funding for the Development of the Capital of the Archipelago (IKN)
• The relocation of the National Capital City is based on the is obtained from the State Budget, PPP, SOEs, and Private
concentration of economic activities in Jakarta and Java Island, Investment.
so it causes economic disparities between Java and Outside
Java.
Private Investment Cooperation State Budget
• Government buildings and
Palace, basic infrastructure (non-
Government worker housing
cluster), defense and security,
• Education and Health Facilities
costs of transferring Government
(Hospitals, Schools)
worker reforestation, costs of
• Commercial area (café and
operating authority
restaurant, hotel)
• Tourism area, industrial area,
innovation and technology Composition of Financing schemes
center
• Smart city 4%
GDP of USD180 Billion • Area operational
Indonesia's 3 Million New Jobs
New Economic 65% of the total estimated need for 31%
7+ Million Residents of facilities and infrastructure in 2022-
Driver IKN, Balikpapan, and 2024* will be implemented through the
Samarinda PPP scheme. 65%
Tax base to be
4th Most Populous Budget reform as a
broadened from
Largest Economy country in the part of larger
one reduce
in South East Asia World; 64% in economic reform
dependency on
productive age initiative
commodities
Large and Consistent Fuel subsidies
Rising Middle Stable Budget Reform significantly reduced
Manageable Prudent debt
Inflation Rate
Class and Affluent Economy and spending
management
Customers redirected to more
Reform- productive allocation
Oriented
Administration Three main sources of financing for
From commodity-based to manufacturing
investment needs: State and regional
and service sectors via infrastructure
budget, State Owned Enterprises and PPP
development
New High
From consumption-led to investment-led Continuing from 2015 policy, infrastructure
growth via a stronger manufacturing Economic Infrastructure spending will be higher than fuel subsidy
sector and more investment initiatives Structure Investments Infrastructure spending focused on basic
Policies to maintain purchasing power to infrastructure projects
stimulate domestic economy in the midst
of weakening macroeconomic conditions Fiscal and non-fiscal incentives to attract
infrastructure investment and promote PPP
76
National Economic Growth Remains Solid
Against a backdrop of global economic moderation, economic growth in Indonesia
Strong GDP Growth1
remains solid. The latest data published by BPS-Statistics Indonesia indicates 5.03%
QoQ YoY (yoy) national economic growth in the first quarter of 2023, up slightly from 5.01%
7,07
8,0 5,72
(yoy) in the previous period. Moving forward, Bank Indonesia projects solid economic
5,02 5,01 growth in 2023 with a bias towards the upper bound of the 4.5-5.3% range on the back
6,0
5,03 of improving domestic demand and persistently strong export performance.
4,0 5,05 5,01
3,83 4,01 4,01 4,21 4,20 Solid economic growth in the reporting period was supported by all GDP
3,74
3,31 3,31 3,72
2,0 3,27 3,14 3,19 3,09 3,06 components. Exports maintained high 11.68% (yoy) growth, underpinned by strong
1,55
1,06 1,81 0,92
0,0 demand in key trading partner countries. Household consumption growth improved to
0,36
(2,07) (1,73) (1,81)
(0,30)
(1,70) (1,69) (1,74)
(2,41) (0,42)
(0,96) (0,96) 4.54% (yoy) in line with increasing mobility and purchasing power, coupled with lower
-2,0 (0,16) (0,36) (0,41) (0,52)
(4,19) inflation. Government consumption expanded 3.99% (yoy), primarily driven by
-4,0 procurement and personnel expenditures. Meanwhile, non-building investment
-6,0 growth also remained solid in line with export performance, though overall investment
was sluggish at 2.11% (yoy) given subdued building investment growth.
-8,0
Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Robust economic growth was also reflected by broad-based sectoral and spatial
growth. All economic sectors recorded positive growth in the first quarter of 2023,
2015 2016 2017 2018 2019 2020 2021 2022 2023
primarily underpinned by the Manufacturing Industry, Wholesale and Retail Trade as
Favourable GDP Growth Compared to Peers2 well as Mining and Quarrying. Meanwhile, the Transportation and Storage sector,
Accommodation and Food Service Activities as well as Other Services posted strong
10,00 5,90 growth on greater public mobility and a surge of inbound international travellers.
% yoy
6,00
Spatially, economic growth in the first quarter of 2023 was maintained in nearly all
5,00 regions of Indonesia, led by Kalimantan, followed by Sulawesi-Maluku-Papua
5,00 (Sulampua), Java, Sumatra and Bali-Nusa Tenggara (Balinusra).
0,00 1,40
2023 Growth Projection *)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Institutions GDP growth
-5,00 1,00 2023 Budget 5.3
GDP Growth (% yoy) 5,17 5,02 (2,07) (0,69) 7,08 3,53 5,03 3,70 5,02 5,46 5,73 5,01 5,31 5,03
Private Consumption 5,14 5,16 (2,67) (2,25) 5,92 1,06 3,55 2,01 4,37 5,49 5,40 4,50 4,94 4,57 54,06
Household Consumption 5,05 5,04 (2,63) (2,21) 5,96 1,02 3,56 2,02 4,34 5,51 5,39 4,48 4,93 4,54 52,88
NPI Serving Households Consumption 9,15 10,62 (4,21) (3,65) 4,06 2,87 3,20 1,62 5,90 5,02 5,97 5,70 5,64 6,17 1,17
Government Expenditure 4,82 3,27 2,12 2,57 8,22 0,65 5,29 4,24 (6,62) (4,63) (2,55) (4,77) (4,51) 3,99 5,32
Gross Fixed Capital Formation 6,68 4,45 (4,96) (0,21) 7,52 3,76 4,49 3,80 4,08 3,09 4,98 3,33 3,87 2,11 29,11
Building 5,41 5,37 (3,78) (0,74) 4,36 3,36 2,48 2,32 2,58 0,92 0,07 0,11 0,91 0,08 21,69
Nonbuilding 10,44 1,83 (8,44) 1,44 18,50 4,96 10,40 8,42 8,63 9,71 19,32 12,11 12,53 7,93 7,42
Export 6,51 (0,48) (8,42) 2,17 28,41 20,74 22,24 17,95 14,22 16,40 19,41 14,93 16,28 11,68 22,71
Import 12,14 (7,13) (17,60) 5,21 33,20 31,08 32,61 24,87 16,04 12,72 25,37 6,25 14,75 2,77 (19,56)
Source: Central Bureau of Statistics of Indonesia (BPS), ** Including non-profit household consumption
Economic Growth (% yoy) 5,17 5,02 (2,07) (0,69) 7,08 3,53 5,03 3,70 5,02 5,46 5,73 5,01 5,31 5,03
Agriculture, Forestry, and Fishery 3,88 3,61 1,77 3,48 0,56 1,44 2,33 1,87 1,16 1,68 1,95 4,51 2,25 0,34 11,77
Mining and Quarrying 2,16 1,22 (1,95) (2,02) 5,22 7,78 5,15 4,00 3,82 4,01 3,22 6,46 4,38 4,92 11,85
Manufacturing 4,27 3,80 (2,93) (1,38) 6,58 3,68 4,92 3,39 5,07 4,01 4,83 5,64 4,89 4,43 18,57
Construction 6,09 5,76 (3,26) (0,79) 4,42 3,84 3,91 2,81 4,83 1,02 0,63 1,61 2,01 0,32 9,88
Wholesale and Retail Trade 4,97 4,60 (3,79) (1,28) 9,50 5,12 5,54 4,63 5,73 4,43 5,37 6,55 5,52 4,89 12,95
Transportation and Warehousing 7,05 6,38 (15,05) (13,09) 25,10 (0,72) 7,93 3,24 15,79 21,27 25,80 16,99 19,87 15,93 5,56
Information and Communication 7,02 9,42 10,61 8,72 6,90 5,54 6,24 6,82 7,15 8,06 6,95 8,75 7,74 7,19 4,19
Financial and Insurance Services 4,17 6,61 3,25 (2,97) 8,33 4,29 (2,59) 1,56 1,64 1,50 0,87 3,76 1,93 4,48 4,31
Other Services 6,18 6,66 (1,24) (2,51) 9,83 (0,84) 3,43 2,35 3,33 4,03 7,88 4,95 5,04 4,55 16,32
%
Indonesia's GDP Share (%)
100,0
20,0 10,46 11,81 11,61 11,01 9,83 6,27 9,55 12,64 13,03
7,65 7,18 7,58 8,08 7,26 6,82 6,15 6,43 7,64 8,09 10,43 8,97 10,37 12,65 12,22 11,85
6,48
10,0
13,93 13,51 13,37 13,36 13,34 13,49 13,48 13,16 12,81 12,71 12,84 15,44 14,67 11,97 13,70 13,23 14,29 14,32 11,39 13,28 12,57 13,08 13,00 11,00 12,40 11,77
-
10
11
12
13
14
15
16
17
18
19
20
21
22
20
20
20
20
21
21
21
21
22
22
22
22
23
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
1-
2-
3-
4-
1-
2-
3-
4-
1-
2-
3-
4-
1-
Q
Q
Taxes Other Services Financial and Insurance Services Information and Communication
Transportation and Warehousing Wholesale and Retail Trade Construction Manufacturing
Mining and Quarrying Agriculture, Forestry, and Fishery
Source: Central Bureau of Statistics of Indonesia (BPS), calculated 80
Solid Fundamentals Facing the Headwinds
2008 3,8
10,5
5.46
5,7
Mar 2023
August 2020 2.49
3,22
1998 2008 24 Jul-15
May 2023
0 5 10 15 20 25 30 35 40
2018
5.17% 3.13% 2.98% 11.75%
Realization
2019
5.02% 2.72% 2.71% 6.08%
Realization
2020
-2.07% 1.68% 0.4% -2.4%
Realization
2021
3.69% 1.87% surplus 0.3% 5.24%
Realization
2022 surplus
5.31% 5.51% 11.35%
Realization 1.0%
surplus 0.4% -
2023 4.5-5.3% 3.0±1% 10-12%
deficit 0.4%
Source : Bank Indonesia
82
Section 4
External Factor:
Improved External Resilience
External Sector Remains Resilient
… Supported by Adequate Reserves and Sound Balance of Payments
Trade Balance Surplus Continues Official Reserve Assets Increased to Reinforce External Sector Resilience
2017: 2018: 2019: 2020: 2021: 2022:
Surplus Deficit Deficit Surplus Surplus Surplus FX Reserves as of April 2023: US$144,2bn
US$11.83bn (US$8.65bn) (US$3.24bn) (US$21.81bn) (US$33.8bn) (US$54.52bn)
US$bn (Equiv. to 6.3 months of imports + servicing of government debt)
15
OG Non-OG Total US$bn FX Reserves (LHS) Month of Impo rt & Debt Service (RHS) Month
150 15
10 140 14
5,64 13
130 12
120 11
5 10
110 9
3,94 100 8
7
90 6
0 80 5
4
-1,7 70 3
60 2
-5 1
50 -
1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 1 3 5 7 9 1 3 5 7 9 1 3 5 7 9 1 3 5 7 9 1 3 5 7 9 1 3
11 11 11 11 11
2017 2018 2019 2020 2021 2022 2023
2018 2019 2020 2021 2022 2023
Source: BPS * Preliminary Figure ** Very Preliminary Figure Source: Bank Indonesia 84
Exchange Rate Movement Supported by BI Stabilization
Measures
Movement of Rupiah
17.000 The rupiah continues to regain lost value in line
24-May-23 with the stabilisation measures implemented by
16.500
Quarterly Average Bank Indonesia. The rupiah is tracking an
15568 16.000 appreciatory trend in the second quarter of 2023,
IDR/USD 14893 14935 15223
14566
15.500 gaining 0.63% (ptp) as of 24th May 2023 compared
14373 14900
14157 15.000 with the level recorded at the end of the first
14120 14339 14399 quarter of 2023, driven by an influx of foreign
14804 14.500
capital inflows in the form of portfolio
14669 14.000
14259 investment. Year-to-date, the rupiah gained 4.48%
14064 14219 13.500
14344 on the level recorded at the end of December
13.000 2022, thus exceeding baht (0.20%) and rupee
4-Dec-20
29-Nov-21
24-Nov-22
10-Dec-19
26-Oct-19
20-Oct-20
15-Oct-21
10-Oct-22
24-Jan-20
18-Jan-21
13-Jan-22
8-Apr-23
23-Apr-20
7-Jun-20
18-Apr-21
2-Jun-21
13-Apr-22
9-Mar-20
4-Mar-21
28-Jul-19
22-Jul-20
17-Jul-21
12-Jul-22
5-Sep-20
31-Aug-21
26-Aug-22
11-Sep-19
27-Feb-22
22-Feb-23
13-Jun-19
28-May-22
23-May-23
8-Jan-23
(0.08%) appreciation, with the peso depreciating
0.10%. Bank Indonesia continues strengthening
rupiah stabilisation policy through triple
intervention and the twist operation to control
Rupiah Exchange Rate Volatilty
imported inflation and mitigate the contagion risk
-5,90
of global financial market uncertainty. Moving
TRY -12,60
ZAR -11,41
forward, Bank Indonesia expects the rupiah to
-8,94
INR 0,01 continue appreciating, supported by a positive
-4,22
CNY -2,00
-1,88
current account and foreign capital inflows in line
IDR -1,41
4,48 with the promising economic growth outlook, low
JPY -5,38 inflation and attractive yields on domestic financial
-1,06
PHP -0,10
-0,82 assets for investment.
MYR -4,11
-0,30
KRW 2023 vs 2022 (YTD) -3,95
0,16
BRL poi nt-to-point average 6,20
0,99
EUR 0,69
2,49
THB 24-May-23 0,25
3,29
SGD -0,53
3,44
-15,0 -10,0 -5,0 0,0 5,0 10,0
Source: Reuters, Bloomberg (calculated) 85
Ample Lines of Defense Against External Shocks
Ample Reserves
l Renewed a 3 year USD22.76 billion swap line with Japan on October 14th, 2021
Japan
l The facility is available in USD and JPY
l Renewed a 1 year SGD/IDR swap arrangement with the size up to SGD 9.5 bn / IDR 1000 tn (equivalent) in
Singapore
November 2022
Bilateral
l Renewed a 3 year swap arrangement and increased the size of swap line up to CNY 250 bn / IDR 550 tn
China
(equiv.) in January 2022
l Established a 3 year RM/IDR swap arrangement with a size up to RM 8 billion / IDR 28 trillion (equiv.) in
Malaysia
September 2022
l Renewed a 3 year A$/IDR swap arrangement with a size up to A$10 billion or IDR 100 trillion in February
Australia
2022
Chiang Mai l Entitled to a maximum swap amount of US$ 22.76 bn under the ASEAN+3 (Japan, China, and Korea) FX
Regional
IMF Global
Global
l Indonesia is entitled to access IMF facilities for crisis prevention to address potential (actual) BOP problem
Financial Safety
l Such facilities include Flexible Credit Line (FCL) and Precautionary and Liquidity Line (PLL)
Net - GSFN
Source: Bank Indonesia 86
Healthy External Debt Profile
External Debt Structure The Structure of External Debt is Dominated by Long-Term Debt
Private External Debt Public External Debt
Short Term External Debt Long Term External Debt
100% 100%
90% 90%
80% 80%
50,5
70% 70%
60% 60% 83,7
50% 50%
40% 40%
30%
30%
49,5 20%
20%
10% 16,3
10%
0%
0%
**
M 1*
M 2*
b- *
Q 019
Q 019
Q 020
Ja 20
Se 1*
Se 2*
09
11
13
15
Q 17
M 21*
N 1*
M 22*
ar *
Ju 1*
Ju 2*
Ja 1*
Fe 23*
M 22
23
l- 2
l- 2
2
-2
-2
-2
2
2
20
20
20
20
20
20
M 1*
M 2*
N 1*
ar *
*
Q 019
Q 019
Q 020
Ja 20
Se 1*
Se 2*
09
11
13
15
Q 17
M 21*
M 22*
Ju 1*
Ju 2*
Ja 1*
p-
p-
n-
n-
2
2
3*
M -22
ay
ay
ar
ar
ov
-
1-
3-
1-
3-
2
l- 2
l- 2
-2
-2
2
2
-2
20
20
20
20
20
20
-2
p-
-
-
n-
n-
2
ay
ay
ar
ar
p
ov
1-
3-
1-
3-
External Debt Remains Manageable External Debt to GDP Ratio & Debt to Export Ratio
Million USD % 39,3
39,0
% 38,1 37,4
36,1 37,3 37,0
External Deb t External Deb t Growth (yoy) - rhs 240 36,7
36,5 40
450.000
17,1
20,0 36,1 36,0 36,1 34,9
34,7
34,3 34,4 33,6
400.000 220 31,8 32,9 31,7 35
15,0 29,1 30,2
350.000 11,5 11,312,0 200 26,5 27,4 214,6 30
10,2 10,1 25,0 206,9 208,8 30,1
300.000 10,0 180 197,2 25
5,9 6,5 189,2
5,4 183,3
250.000
160 177,0 177,2
176,1 172,2 172,0 175,3 20
3,0 2,9 2,6 2,1
5,0 168,4 168,6 168,4
200.000 0,7 1,2 1,3 0,9 0,4 156,6
-0,1-0,4 140 15
-1,0 -1,6 -1,2-0,9-0,8 145,2 118,9
150.000 0,0 139,5
-3,9 120 External Debt/ Export Ratio (rhs) 131,1 10
100.000 121,8 123,1 121,3
-5 ,0 100 114,9 113,8 5
50.000 External Debt/ GDP Ratio
101,0
80 0
0 -1 0,0
Q3 9
Q1 9
Q3 0
Q1 20
09
11
13
15
Q1 7
Q1-2019
Q2-2019
Q3-2019
Q1-2020
Q2-2020
Q3-2020
Q3 1*
Q1 1*
Q3 2*
2*
*
Q1-2021*
Q2-2021*
Q1-2022*
Q2-2022*
Q3-2022*
Q4-2022*
Mar-23**
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021**
01
01
02
1
3*
0
20
20
20
20
20
02
02
02
02
-2
-2
-2
-2
-2
-2
-2
-2
-2
ar
M
Source: Bank Indonesia, External Debt Statistics of Indonesia *Provisional Figures **Very Provisional Figures 87
Strengthened Private External Debt Risk Management
Debt Burden Indicator (External Debt/GDP) Remains Comparable to Peers Rating Encouraging Corporates Compliance on Hedging Ratio & Liquidity Ratio
323
Regulation Key Points 1 Jan 17 & beyond
corporates
Object of Regulation Governs all foreign currency Debt (12.8%)
Hedging Ratio
≤ 3 months 25%
> 3 – 6 months 25%
Liquidity Ratio 2192
70% corporates
(≤ 3 months)
(87.2%)
Minimum rating of BB-
Credit Rating
(State-owned Enterprises)
Must be done with a bank in
Hedging transaction to meet hedge ratio Compl y Not Comply
Indonesia
Sanction Applied
*Data as of Q3-2022, with total population 2,515 corporates
Source: Bank Indonesia
Source: Bank Indonesia 88
Section 5
Fiscal Performance and Flexibility:
Strong Commitment in Maintaining Fiscal Credibility
Fiscal Policy Works Hard, Responsive, and Flexible
During Pandemic
Covid-19 measures, accelerating recovery, and supporting reforms
• Law No.1/2020 à Law • Focus on handling the • Strengthening pandemic handling • Returns a maximum deficit of
No.2/2020 pandemic (vaccination and (accelerating vaccination to 3% of GDP
health protocols) achieve communal immunity)
• Stimulus for handling • Primary balance towards
Covid-19 and the PEN • Economic recovery, flexible • Accelerating economic recovery positive
Program and accountable PEN (PEN sustainability)
• Debt ratio is attempted to
• The Fiscal deficit widened • Momentum of reform (Tax • Reform effectiveness
decrease
by 6.34% of GDP Reform, Financial Relations
between the Central and • Debt controlled risk
Regional Governments )
Budget Deficit 2020 (% GDP) Budget Deficit 2021 Budget Deficit 2022 Budget Deficit 2023
Perp res Perp res Perpres Realization
Bud get no .54 no .72 Realizatio n Draft Budget no.98 (Preliminary) Budget
0 Budget Budget Realization 0 2
0
-2 -2
-1,8 -2
-4
-4 -4 -2,4 -3
-6 -6 -4,5 -
-5,1 -6 -4,6 -4,9 2,8
-8 -6,3 -6,1 -8 -5,5 -5,7 -8 -8
PEN 403.9 744.8 655.1 396.7 FISCAL DISCIPLINE FOR LONG
405.1 695.2 575.9
Program TERM SUSTAINABILITY
(IDR T)
1. Tax 323.1 21.8 41.6 1,718.0 432.2 25.2 33.8 Financial 38,1%
10.8%
2. Custom & Excise 79.3 26.5 27.3 303.2 72.2 23.8 (8.9) Services 13,9%
II. Non-Tax Revenue 99.2 20.6 12.0 414.4 142.7 32.3 43.7 113,6
11.1% Mining %150,8
B. Expenditure 490.7 15.8 (6.2) 3,061.2 518.7 16.9 5.7
%
I. Central Government 314.2 13.7 (10.2) 2,246.5 347.3 15.5 10.5
Construction & 25,8%
4.5%
1. Line Ministries Spending 150.0 15.9 (25.6) 1,000.8 166.9 16.7 11.3 Real Estate 10,0%
2. Non-Line Ministries 164.2 12.1 10.6 1,245.6 180.3 14.5 9.8
4.4%
54,3%
Transportation
II. Regional Transfer & Village 3,0%
176.5 21.9 2.0 814.7 171.4 21.0 (2.9)
Funds
C. Primary Balance 95.5 (22.0) 246.3 (156.8) 228.8 (145.9) 139.6 3.6% Busines 46,8%
Services 16,3%
D. Surplus (Deficit) 11.1 (1.3) 107.7 (598.2) 128.5 (21.5) 1,058.4
% to GDP 0.06 (2.84) 0.61 3.0% Information & 9,1%
E. Financing 139.8 16.6 (58.0) 598.2 203.7 34.1 45.8
Communication 32,7%
92
Source: Ministry of Finance
Customs
. And Excise Revenues Are Slightly Slow But On-track
39,3%
-1,6% -3,6% 8,8%
37,9% 73,9% 534,9%
15,4% -0,7% 12,3
11,3
48,2 55,7 55,2
132,2%
8,41 8,11 -32,6%
-71,7%
10,7
27,7
4,61
3,03
0,73
Tobacco excise tax revenue decreased The growth of import duty is driven by the The performance of export duty is
slightly, due to the decline in January import of main commodities that are still declining due to moderated prices of
2023 production increasing and the weakening of the rupiah crude palm oil and the decrease in
currency export volume of mineral commodities
Revenue
2019 2020 2021 2022 2023
55,65 55,24 Non - Mineral & Coal Mineral & Coal Growth (%)
48,23 907.314,8
-9,2 -100,0 10.655,1 3.120,0
SOE’s
0,0 24,0 0,0 0,1 4,6
Revenue
2019 2020 2021 2022 2023
27,73 SOE's Profit (IDR T) Central Bank Surplus (IDR T) Growth (%)
12,7 66,8 30,2
-4,2 -16,1
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Realization Growth (%) Realization Growth (%) Realization Growth (%)
13,0
2019 Realization
2020 2021 % Growth
2022 2023 2019 2020 2021 2022 1,7 6,0
Realization % Growth2023 0,0 0,5
2019 2020 2021 2022 2023
Non-Energy Subsidy Growth (%)
YTD 31 March 2023
95
Source: Ministry of Finance
The Performance Of Transfers To The Region Requires
Improvement
Transfer to Region Fund
(January – March)
• The distribution of transfers to regions in
2023 IDR 171.4T the Indonesian government budget
(21.0% from budget)
decreased by 2.9% in nominal terms as of
31 March, 2023.
IDR176.5T
2022 • The total disbursement was IDR 171.4 T
(21.9% from budget)
(21.0%), slightly lower than the
Revenue Sharing (DBH)
General Allocation (DAU) disbursement in FY 2022 of IDR 176.5 T
Physical Special Allocation (DAK Fisik) (21.9%).
Non- Phy isical Special Allocation (DAK Non Fi sik)
Incentive for Local Gov't (DID)
Special Autonomy & Privilege Allocation for Yogyakarta
Village Fund
Incentive Fiscal
REVENUE
n Regional Tax 23,38
8,14 19,80
performance in 9,75 2,41 5,52 4,76
2,39 1,57 SPENDING
February 2023 grew 1,29 30,49
29,54
14.0% (y.o.y), driven by Up to March, local Gov’t
39,83 45,4 spending grew by 5.9%
growth in the realization
of consumptive taxes, (yoy) contributed by 57,41
54,75
indicating that the Personnel and Other
economic activities of Jan - Mar 2022 Jan - Mar 2023
Spending.
the people in the Local Tax Retribution Jan - Mar 2022 Jan - Mar 2023
regions are continuing
Return of Local Gov't Other Revenue Personnel Spending Material Spending
to improve.
Capital Spending Other Spendings
Source: Ministry of Finance
Budget Financing Apply Prudent, Flexible, And
Opportunistic Principle
Financing Realization Up To 31 March Domestic Loan (Nett) Foreign Loan (Nett)
IDR (0.36 T) IDR 7.56 T
224.8
150.1
2022 2023
Loan (nett) Securities (nett)
• IDR 6T disbursement
PLAN & REALIZATION OF for The Low Income
INVESTMENT FINANCING Housing People’s Housing
Education • Total International • Financing
Financing Financing
AS OF 31 MARCH 2023 Fund Endowment Development LDKPI
Liquidity • 46,233 Housing under
Management Find as of 31 Cooperation by IDR 2T
Facility FLPP financing valued
Agency March 2023 Fund (LDKPI)
at IDR 5,17T
IDR 85.8T* (LPDP) IDR 134.11T IDR 8T*
IDR 8T*
Kebutuhan
Kebutuhan Sumber
Financing
Pembiayaan
Sources
Financing Needs Sumber Pembiayaan
Pembiayaan
Pembiayaan
o Investment financing
o Lending Gross GS 2023
Matured
(Auction & non- T-Bills
o Liabilities auction) Issuance
o Other financing
Sukuk
o Matured debt 30-36% GDS
70-64%
Our Debt financing policies encourage flexible and sustainable debt management to support economic transformation. Amidst
increasing global risks, fiscal pressures, and moderating domestic SBN demand, we will optimize non-debt financing sources
considering the high financing needs and choosing the right timing for issuance.
debt
independence
policy
Procurement of foreign debt as an effort to mitigate the crowding
out effect.
Utilizing cash loans within the framework of financing flexibility to ensure the
fulfillment of financing, while the choice of cash loan currency takes into account
cash requirements and debt portfolio management
Budget Financing continues to well risk-controlled, among others through optimal composition, good related to currency, interest rates,
and maturity
Debt
Financing
Loan Rp3.9
Realization (Net)
Rp 243.9 (35.0%)
Foreign Loan (Net)
Rp30.2
Note :
1. all numbers in trillion Rupiah
2. The percentage is the percentage of budget ceiling from National Budget year 2023
(Trillion IDR)
Realization
(ao. Apr 28, 2023)
Government Securities (GS) Nett 342.11
Government Securities (GS) Gross 235.05
Government Debt Securities (GDS) 187.56
IDR Denominated GDS 139.40
- Coupon GDS 21.85
- Conventional T-Bills 4.12
- Private Placement (+ Voluntary Disclosure Program) 22.18
- Retail Bonds 47.49
Foreign Denominated Bonds 46.77
- SEC USD-EUR ( - Buyback LM) 0.00
- Samurai Bond 0.00
- SDG Bonds 0.72
- Valas Voluntary Disclosure Program 107.06
Sovereign Sharia Securities (Sukuk) 107.06
Domestic Sovereign Sharia Securitoes 76.46
- IFR/PBS/T-Bills Sukuk (Islamic Fixed Rate Bond/Project Based Sukuk 85.00
- Retail Sukuk 21.49
- Private Placement 0.57
Global Sukuk 0.00
150
1.00
100 In 2023:
• average incoming bid =
0.50
50 IDR36.96 tn/auction
• average awarded bid =
- - IDR16.42 tn/auction
Holders of Tradable Gov’t Domestic Debt Securities Foreign Ownership of Gov’t Domestic Debt Securities by Tenor
39,3%
46,9% 53,7% 55,3%
25,2%
19,0% 10,3% 10,14% 10,2% 9,9% 8,7% 8,6% 9,29% 9,15% 9,04% 8,76%
14,9% 5,1% 3,31%
14,4% 5,3%
2,9% 4,1% 4,3% 3,59% 4,8% 4,9% 5,0% 5,0% 4,57% 4,41% 4,95% 5,56% 5,80%
22
2
3
2
2
2
22
22
2
t-2
l-2
2
r-2
r-2
-2
-2
-2
-2
n-
c-
v-
n-
b-
p
g
ay
ar
Ju
Oc
De
Ap
Ap
No
Ju
Ja
Au
Fe
Se
M
M
Foreign Holders Domestic Non Banks Domestic Banks
0-1 >1-2 >2-5 >5-10 >10 % Foreign Ownership of Total
Stable Debt to GDP Ratio Over the Years Prudent Fiscal Deficit
IDR Tn Government Debt / GDP (%)
1.177
878
659
9.000,00 39,36% 40,73% 39,57% 38,13% 45%
442 358 446
8.000,00 40%
7.000,00 842,29 35%
29,40% 29,81% 30,18% 887,04
53
27,46% 28,34% 819,86 14 1 30
6.000,00 30%
5.000,00
852,91
25% (20) (56) (57) (9)(35) (36) (7)
(269) (105)
7.007,03
(349)
6.846,89
4.000,00 764,48 20% (341)
6.091,85
810,74 (464)
5.221,65
3.000,00 746,32
15% -2,50% -1,80% -2,20% -2,38%
4.014,80
734,85
3.612,69
(775)
3.248,93
755,12
2.780,86
2.000,00 10%
2.410,01
0%
2015 2016 2017 2018 2019 2020 2021 2022 Apr-23 2018 2019 2020 2021 Dec-22 Apr-23
IDR USD EUR JPY OTHER
Source: Ministry of Finance 106
Well Balanced Maturity Profile with Strong Resilience
Against External Shocks
Interest Rate Risks (%) Declining Exchange Rate Risks (%)
28,0 25,5
22,0 27 50,0 44,6
20,7 21,0 42,6 41,3
23,0 19,2 19,7 41,0
17,5 40,0 37,9
16,1 33,5
18,0
30,0 29,2
30,0 27,1
13,0 10,6 10,5
8,9
6,6
20,0
8,0 12,2 12,1 12,1 12,2 13,2 12,2
13,7 11,4 11,6 10,6
12,1 10,6 10,6 9,8 8,2 8,2 10,0
3,0 7,6 7,4
(2,0) 0,0
2015 2016 2017 2018 2019 2020 2021 2022 Apr-23 2015 2016 2017 2018 2019 2020 2021 2022 Apr-23
VR Prop Non SKB VR Prop SKB Refixing Proportion FX to GDP Ratio FX Proportion
Transaction Highlight
Issuer Republic of Indonesia
• The first Emerging Asian sovereign issuer in 2023
Baa2 Moody’s (Stable) BBB S&P (Negative) and marks the Republic’s thirteenth successful
Issuer Rating
BBB Fitch (Stable) SEC-registered US$ transaction since 2018.
• A low new issuance concession for the transaction,
Format SEC-Registered Notes Offering
which was also one of the lowest amongst the
Pricing Date January 5, 2023 transactions launched on the same day
Maturity January 11, 2028 January 11, 2033 January 11, 2053
BofA Securities, DBS Bank Ltd., HSBC, Mandiri Securities and Standard
JLM
Chartered Bank
Use of Net proceeds from the sale of the Bonds will be used for the
Proceeds general purposes of the Republic
108 108
Source: Ministry of Finance
Section 6
Monetary and Financial Factor:
Credible Monetary Policy Track Record
and Favourable Financial Sector
Bank Indonesia’s Policy Mix Direction in 2023
Maintaining Stability, Accelerating Economic Recovery
• Monetary policy towards maintaining stability 1
• Policy rate increase as a follow-up step to ensure continued lower expected inflation and inflation in a front-loaded, pre-emptive, and forward-
looking measure to maintain core inflation within the range of 3.0±1%
• Strengthening rupiah stabilization policy as part of measures to control inflation, primarily imported inflation
ü Issuing new foreign exchange monetary operation instruments to boost placement of Export Proceeds, domestically by banks and exporters to
strengthen stabilization, including Rupiah exchange rate stability and national economic recovery
• Continue buying/selling SBN in the secondary market to strengthen transmission of the BI7DRR by increasing the attractiveness of SBN yields for
foreign portfolio investment inflows to strengthen exchange rate stabilization measures
n Accommodative macroprudential policy stance to reignite bank lending to the corporate sector and drive the national economic recovery, while 2
maintaining financial system stability
n Incentivize banks to disburse financing to priority sectors and promote inclusive financing
n Strengthen implementation of macroprudential Inclusive Financing Ratio (RPIM) to increase economic inclusion, unlock financial access, while
strengthening MSME's contribution to the national economic recovery
n Accommodative macroprudential policy stance, among others by: relaxing LTV/FTV, relaxing down payment requirement, CCB 0%, Macroprudential
Intermediation Ratio (MIR) 84-94%, Macroprudential Liquidity Buffer (MLB) at 6% with 6% repo flexibility, Sharia Macroprudential Liquidity Buffer
(SMLB) at 4.5% with repo flexibility at 4.5%
3
n Accelerating payment system digitalization to stimulate economic recovery and implementation of the
Indonesia Payment System Blueprint 2025
n Strengthen and expand digitalization through social programs, e-payment for Government
n Increase the number of participants, expand services and garner greater acceptance of BI-FAST for more
efficient transactions between banks and members of the public
n Expanding cross-border QRIS by, among others, accelerating implementation, piloting local currency settlement
(LCS) with other Asian countries and organising National QRIS Week
4
n Money market deepening by expanding underlying DNDF to boost liquidity and reinforce JISDOR as a reference for the exchange
rate in the FX market
n Accelerate key infrastructure development, including Electronic Trading Platforms (ETP) and a Central Counterparty (CCP)
n Continue to develop the Money Market Development Blueprint 2025
n Promote inclusiveness and the green economy in finance
5
n Controlling inflation through Inflation Control Team in national and regional level, and accelerating implementation of the National Movement for Food
Inflation Control (GNPIP)
n Support the national economic recovery program through cooperation and collaboration with the MOF
n Strengthening the coordination with the Government and related authorities to revive bank intermediation function
n Strengthening policy coordination with the Government and Financial System Stability Committee to maintain macroeconomic and financial system stability
The BI Board of Governors agreed on 24th and 25th May 2023 to hold the BI 7-Day Reverse Repo Rate at 5.75%, while also
maintaining the Deposit Facility (DF) rate at 5.00% and Lending Facility (LF) rate at 6.50%.
8 3,74
4,00
6 2,83
4 3,00
2 4,33
2,00
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 Apr-23
M 0
M 1
M 2
Ju 6
Ap 6
Se 0
Se 1
Se 2
Q 016
Q 017
Q 018
Q 019
M 9
Q l-16
Ju 0
De 0
Ju 1
De 1
Ju 2
De 2
M 23
3
-2
-2
-2
2
2
2
r-1
1
2
1
-2
p-
p-
p-
-
20
c-
c-
c-
n-
n-
n-
n-
ar
ar
ar
ar
ay
2
2
Ja
4-
3-
2-
1-
4-
Rupiah Exchange Rate Volatilty Credit Growth Profile
%
TRY -5,90 yoy
-12,60 20,0
ZAR -11,41 -8,94
INR 0,01
-4,22 15,0 10,12
CNY -2,00
-1,88
IDR 4,48
-1,41 10,0
JPY -5,38 8,68
-1,06
PHP -0,10
-0,82 5,0 6,55
MYR -4,11
2023 vs 2022 (YTD) -0,30
KRW -3,95
0,16 0,0
BRL poi nt-to-point average 6,20 8,08
0,99
EUR 0,69 Total Growt h Working Capital Loans
2,49 -5,0
THB 0,25 Investment Loans Consumption Loans
24-May-23 3,29
SGD -0,53
3,44 -10,0
Apr-23
Nov-21
Nov-22
Jan-15
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
Jan-21
Jan-22
Jan-23
Jul-15
Jul-16
Jul-17
Jul-18
Jul-19
Jul-20
Jul-21
Jul-22
Mar-21
Sep-21
Mar-22
Sep-22
Mar-23
May-21
May-22
-15,0 -10,0 -5,0 0,0 5,0 10,0
In March 2023, bank loans decreased by 9.93% (yoy), and Third-Party Majority types of loans continued their positive trend, particularly
Funds (Total Deposits) also decreased by 7.00% (yoy). Investment loans, which grew by 11.40% (yoy) in March 2023
Oct-22
Oct-20
Oct-19
Apr-21
Apr-22
Apr-20
Apr-19
Jul-22
Jul-20
Jan-22
Jan-20
Jul-21
Jan-23
Jan-19
Jul-19
Jan-21
Mar-23
Mar-23
Oct-21
Oct-22
Oct-20
Oct-19
Apr-21
Apr-22
Apr-20
Jul-21
Apr-19
Jul-22
Jul-20
Jul-19
Jan-21
Jan-22
Jan-20
Jan-23
Jan-19
-2%
-4% -5%
-6%
-10%
Third-Party Funds (Total Deposits) grew stable in March 2023, mainly
Loan growth by segmentation continued to improve in March 2023, with
supported by Demand Deposits growth, which increased by 11.32%
major contribution from Corporation loans, which grew by 11.38% (yoy).
(yoy), respectively.
Apr-21
Oct-21
Apr-22
Apr-20
Apr-19
Oct-19
Jan-20
Jul-21
Jan-23
Jul-22
Jul-20
Jul-19
Jan-21
Jan-22
Jan-19
0%
Oct-22
Oct-20
Oct-19
Apr-21
Oct-21
Apr-22
Apr-20
Apr-19
Jul-22
Jul-20
Jan-22
Jan-20
Jul-21
Jan-23
Jan-19
Jul-19
Jan-21
-5%
% %
5 NPL Net NPL Gross CAR Tier 1
25 24,69
4
3 2,49 20
23,21
2
1 0,72 15
Oct-2 2
Oct-2 1
Apr-2 0
Oct-2 0
Oct-19
Apr-2 2
Apr-2 1
Apr-19
Jan-21
Jan-23
Jan-20
Jul-21
Jul-20
Jan-22
Jul-22
Jan-19
Jul-19
10
Mar-23
Oct-2 2
Apr-2 1
Oct-2 1
Apr-2 0
Oct-2 0
Oct-19
Apr-2 2
Apr-19
Jan-22
Jan-21
Jan-23
Jan-20
Jul-21
Jul-20
Jul-22
Jan-19
Jul-19
Mar-23
Liquid Assets to Non-Core Deposits and Liquid Assets to Third-Party Funds The banking industry's Net Interest Margin and Return on Assets
(Total Deposits) remained well above the thresholds. remained steady at 4.77% and 2.77%, respectively, as of March 2023.
%
% % 6
Liquid Assets to Non-Core Deposits Net Interest Margin Return on Assets 4,77
180 40
160 28,91 35
30 4
140 2,77
12 0
25
128,87 20
100 2
threshold LA to TPF (rhs) = 10% 15
80 10
60 threshold LA/ NCD= 50% 5 0
Oct-2 0
Oct-2 2
Apr-2 1
Oct-2 1
Apr-2 0
Oct-19
Apr-2 2
Apr-19
Jan-22
Jan-21
Jan-23
Jul-22
Jan-20
Jul-21
Jan-19
Jul-20
Jul-19
Mar-23
40 0
Jan -19 Apr-19 Ju l-19 Oct-19 Jan -20 Apr-20 Ju l-20 Oct-20 Jan -21 Apr-21 Ju l-21 Oct-21 Jan -22 Apr-22 Ju l-22 Oct-22 Jan -23Mar-23
Net Open Position was maintained well below the maximum limit of 20%
and stood at 1.44% in March 2023.
%
5
4
3
2 1,44
*) provisional figures due to the relaxation on financial
institutions’ report to OJK because of Covid-19 1
0
Oct-2 2
Oct-2 1
Mar-23
Apr-2 0
Oct-2 0
Oct-19
Apr-2 2
Apr-2 1
Apr-19
Jan-21
Jan-23
Jan-20
Jul-21
Jul-20
Jan-22
Jul-22
Jan-19
Jul-19
Mar-23
Oct-21
Oct-22
Oct-20
Oct-19
Apr-21
Apr-22
Apr-20
Apr-19
Jul-22
Jul-20
Oct-2 0
Jan-22
Jan-20
Jul-21
Apr-2 2
Oct-2 2
Jan-23
Jan-19
Apr-2 1
Oct-2 1
Apr-2 0
Jul-19
Oct-19
Jan-21
Apr-19
Jan-22
Jan-21
Jan-23
Jul-22
Jan-20
Jul-21
Jan-19
Jul-20
Jul-19
Mar-23
The gearing ratio of multi-finance companies remained stable at 2.11 Multi-finance companies’ exposure to domestic debt continued to
times or well below the 10 times threshold in March 2023. increase whereas exposure to foreign debt experienced a declining
trend in March 2023. *)
100 57,74
1
50
0
Oct-21
Oct-22
Apr-20
Oct-20
Oct-19
Apr-21
Apr-22
Jul-21
Apr-19
Jul-22
Jul-20
Jul-19
Jan-21
Jan-22
Jan-20
Jan-23
Jan-19
Oct-2 0
Oct-2 2
Apr-2 1
Oct-2 1
Apr-2 0
Oct-19
Apr-2 2
Apr-19
Jan-22
Jan-21
Jan-23
Jul-22
Jan-20
Jul-21
Jul-20
Jan-19
Jul-19
*) provisional figures due to the relaxation on financial institutions’ report to OJK because of Covid-19
Source: Financial Services Authority (OJK)
Insurance and Pension Funds 117
Insurance and pension funds continue to improve, shown by adequate performance and manageable risks.
In March 2023, insurance premiums marked a total increase of In March 2023, the Investment Adequacy Ratio of both Life Insurance and
IDR24.38 Tn (mtm) with General and Life insurance added premiums at General Insurance stayed well above the threshold at 121.3% and
IDR9.87 Tn and IDR14.51 Tn, respectively. 195.62%, respectively.
%
IDR Tn
General insurance Life insurance Life Insurance General Insurance
40 240
220 195,62
35 200
30 180
160 121,30
25 140
20 120
100
14,51
15 80 threshold Investment Adequacy Ratio= 100%
60
10 40
5 9,87 20
0
Mar-23
0
Oct-21
Apr-22
Oct-22
Apr-20
Oct-20
Oct-19
Apr-21
Jul-21
Apr-19
Jul-22
Jul-20
Jul-19
Jan-21
Jan-22
Jan-20
Jan-23
Jan-19
Oct-20
Oct-19
Oct-22
Oct-21
Jul-20
Jul-19
Jul-22
Apr-20
Jul-21
Apr-19
Apr-22
Apr-21
Mar-23
Jan-20
Jan-19
Jan-22
Jan-23
Jan-21
Risk-Based Capital (RBC) of the insurance industry remained well above In March 2023, pension fund and insurance investment values continued
the minimum threshold with Life Insurance at 460.06% and General the upward trend and stood at IDR339.13 Tn and IDR1,472.70 Tn,
Insurance at 315.79% in March 2023. respectively.
% %
Life Insurance (Lhs) General Insurance (rhs) IDR Tn Insurance Pension Funds (rhs) IDR Tn
900 400 1.472,70
800 315,79 350 1.500 400
700 300
1.200 339,13
600 350
460,06 250
500 900
200
400 300
threshold Insurance RBC (rhs)= 120% 150 600
300
200 100
threshold Insurance RBC (Lhs)= 120% 250
300
100 50
0 0 0 200
Oct-2 1
Oct-21
Oct-2 0
Oct-22
Oct-20
Oct-19
Apr-2 2
Oct-2 2
Apr-2 1
Mar-23
Apr-21
Apr-2 0
Oct-19
Apr-22
Apr-20
Jul-21
Apr-19
Jul-22
Jul-20
Jul-19
Jan-21
Apr-19
Jan-22
Jan-20
Jan-23
Jan-22
Jan-19
Mar-23
Jan-21
Jan-23
Jul-22
Jan-20
Jul-21
Jan-19
Jul-20
Jul-19
Jun-19
Mar-22
Mar-21
Mar-23
Mar-20
Sep-21
Sep-20
Sep-22
Dec-21
May-23
Dec-20
Sep-19
Dec-22
Jun-22
Jun-21
Jun-20
Dec-19
-20% -15% -10% -5% 0% 5% 10% 15% 20% 25%
Government bond yields remained competitive, followed by a stable The Net Asset Value (NAV) of equity mutual funds was stable with low
rupiah as the risk premium was maintained. volatility, reflecting a steady movement in the capital market.
5-yr Yield 10-yr Yield IDR Tn NAV Equity Mutual Funds JCI (rhs)
Yield (%) USD/IDR
700 8.000
20-yr Yield IDR (rhs)
10
600 7.000
18.000
9 500 6.000
14.000 5.000
8 400
4.000
10.000 300
7 3.000
200 2.000
6 6.000
100 As of 5 May, 2023 1.000
As of 8 May, 2023
5 2.000 0 0
Jul-22
Jul-20
May-22
May-20
May-23
Mar-23
Jan-22
Jan-20
Jul-21
May-21
Jan-23
Mar-21
Nov-21
Sep-21
Mar-22
Nov-22
Nov-19
Mar-20
Nov-20
Jan-21
Sep-22
Sep-20
Jul-20
May-20
May-23
Jan-22
Jan-20
Jul-21
May-21
Jan-23
Jul-22
Mar-21
May-22
Sep-21
Jul-19
Mar-22
Nov-22
May-19
Mar-20
Nov-20
Jan-21
Sep-22
Mar-23
Mar-19
Sep-20
Sep-19
Jan-19
Nov-21
IDR Tn
Gov't Debt Securities Equity IDR Tn
80 IPO Rights Issue Corporate Bond & Sukuk
60 220
40 200 As of 5 May, 2023
20 180
0 160
-20 140
-40 120
-60 As of 5 May, 2023
100
-80 80 31,6 33,74
-100 60
-120 40 30,84
-140 20
May-23
Jan-20
Jul-21
May-21
Jan-23
Jul-22
Jul-20
Mar-21
May-22
Sep-21
Jul-19
May-20
Mar-22
Nov-22
May-19
Mar-20
Nov-20
Jan-21
Sep-22
Mar-23
Mar-19
Sep-20
Jan-22
Sep-19
Jan-19
Nov-21
Nov-19
0
2016 2017 2018 2019 2020 2021 2022 2023*
12
Total Investor
10,48 10,76 10,88
(million)
10
3,88
4
2,48
2 1,121,62
0
2017 Aug-21 Dec-21 Apr-22 Aug-22 Dec-22 Apr-23
Source: Financial Services Authority (OJK), KSEI
Fintech (Peer to Peer Lending and Securities Crowdfunding) 120
Peer to Peer Lending (P2PL) Fintech intermediation grows with a manageable NPL ratio and Securities Crowdfunding
fundraising continues to rise.
The outstanding loan of P2PL Fintech remained steady and stood at The Non-Performing Loan ratio of P2PL Fintech remained manageable at
IDR51.02 Tn or grew by 36.45% (yoy) as of March 2023. 2.81% in March 2023.
YoY
Peer to Peer NPL Ratio
IDR Tn 10%
60 Outstanding Loan Growth 200%
50 51,02150% 8%
40 100% 6%
30 50% 2,81%
36,45% 4%
20 0%
2%
10 -50%
0%
0 -100%
May-20
Jan-20
Jul-21
May-21
Jan-23
Jul-22
Jul-20
Mar-21
May-22
Sep-21
Mar-22
Nov-22
Mar-20
Nov-20
Jan-21
Sep-22
Mar-23
Sep-20
Jan-22
Nov-21
Mar-23
Oct-21
Oct-22
Oct-20
Oct-19
Apr-21
Apr-22
Apr-20
Apr-19
Jul-22
Jul-20
Jul-19
Jan-22
Jan-20
Jul-21
Jan-23
Jan-19
Jan-21
The total number of investors and issuers in Securities Crowdfunding Continuing the positive trend, the total value of SCF fundraising stood at
increased and stood at 147,142 and 383, respectively, as of 28 April 2023. IDR828.58 billion as of 28 April 2023.
In consumer protection, OJK will focus on creating swift and just resolutions for financial consumers, imposing still financial penalties to create deterrent
effects on violators, eradicating illegal investments, and establishing service centers to channel consumer complaints at all OJK offices across Indonesia.
In the implementation of Financial Sector Omnibus Law (P2SK Law), OJK hopes for stakeholders’ active participation in the P2SK Law implementation process, including
synergy with relevant authorities and institutions during the regulatory and supervisory transition process. Other important measures include Shari’a financial sector
landscape restructuring through spin-offs and banking consolidation, preparing for the implementation of the Insurance Policy Holder Protection Program, strengthening
market conduct supervision, and gradually extending activities and financial products to encompass areas, such as carbon exchanges, bullion activities, digital and crypto
assets.
Source: Bank Indonesia
Source: Financial Services Authority (OJK) 121
OJK Policy Directions 2023
Extended Loans and Financing Restructuring Policy
As global economic uncertainties remain high and economic sectors face different impacts due to the scarring effect
of the Covid-19 pandemic, OJK extended the loans/financing restructuring policy until 31 March 2024 to targeted
sectors as follows:
MSME segment (covering all Accommodation and food Labor-intensive industries, such as
sectors) service activities textile and textile products and
footwear industries
OBJECTIVE : Optimizing financial intermediation and financing portfolio for productive sectors; improving financial access, inclusion and literacy, and
consumer protection; expanding long-term financing resources; enhancing competitiveness and efficiency of the financial sector; and strengthening the
authorities and responsibilities of financial regulators.
OTORITAS JASA KEUANGAN BANK INDONESIA LEMBAGA PENJAMIN SIMPANAN KEMENTERIAN KEUANGAN
Indonesia Financial Services The Central Bank of The Republic of Indonesia Deposit Insurance The Ministry of Finance
Authority Indonesia Corporation
• Strengthening OJK’s role in some • Strengthening BI’s role in some • Strengthening the role of IDIC in • Strengthening the role of the
areas, including integrated areas, such as maintaining deposit guarantee and bank Ministry of Finance as a
supervision, financial financial system stability to resolution. coordinator for Financial System
conglomerate supervision, support sustainable economic • Giving a new mandate: IDIC Stability Committee and
market conduct supervision, growth, maintaining the smooth establishes policies and Sustainable Finance committee.
consumer protection, etc. running of the payment system, implement the insurance policy • The MoF coordinates with OJK,
• Giving new mandates among implementing macroprudential guarantee program. BI, and IDIC in some areas,
others: cooperative in the policies. including financial literacy and
financial sector, digital assets, inclusion, financial sector
carbon exchange, bullion development, etc.
activities.
CHAPTER II. Principles, Purposes, Objectives and Scope CHAPTER XVI Financial Sector Technology Innovation
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