Indonesia's Central Government Debt Profile April 2013 (English)

7/27/2019 Indonesia's Central Government Debt Profile April 2013 (English)

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MINISTRY OF FINANCE OF REPUBLIC OF INDONESIA

DIRECTORATE GENERAL OF DEBT MANAGEMENT


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Kementerian Keuangan Republik Indonesia

Table of Contents

Chapter 1

Backgrounds, Debt Management Objective and Strategy,Debt Instruments, Legal Basis

1. Backgrounds (1)

2. Backgrounds (2)

3. Debt Management Objectives and Strategy

4. Debt Instruments (1)

5. Debt Instruments (2)

6. Debt Management: Legal Basis

Chapter 2

State Budget, Deficit and Its Financing

7. State Budget (APBN) 20082013

8. Financing Cash flow 2008-2013

9. Fiscal Deficit and State Budget Financing, 2008-2013

10. Deficit in Various Countries 2008-2013

11. Budget and Realization of Debt Financing 201312. Realization of Government Securities Issuance 2013

13. Loans Drawing by Type of Financing, 2008-2013

14. Program Loan 2008-2013

15. External Loan Financing 2008 2013

16. Loan Disbursement 2013 - Project Financing

17. Loan Disbursement 2013 - Project Financing (Chart)

Chapter 3Debt Portfolio (Outstanding, Maturity Profile, Change inSecurities and Loans Positions)

18. Government Debt Outstanding 2008-2013

19. Government Debt Outstanding 2008-2013 (Chart)

20. Debt Maturity Profile as of March 28,2013

21. Government Securities Outstanding 2008-201322. Loans Outstanding by Creditor Types

23. Loans Outstanding by Creditor Types (Chart)

24. Loans Outstanding by Economic Sectors

25. Loans Outstanding by Economic Sectors (Chart)

26. Government Debt Outstanding - Main Currencies

27. Government Debt Outstanding - Other Currencies

28. Government Debt Outstanding - by Currencies(Chart)

29. Loans Drawing Proportion by Financing Type (Chart)

Ministry of Finance Republic of Indonesia


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Chapter 4

Debt Portfolio Management Performance (Debt

Performance Measurement and Comparison, LoanDisbursement, Government Debt Securities Re-profiling)

30. Central Government Debt to GDP Ratio

31. Debt to GDP Ratio, Indonesia & some Countries

32. Maturity Profile of Tradable Securities as of March28, 2013

33. Debt Switching and Buyback

34. Debt Reduction through Debt Swap Scheme

35. Loans Disbursement Performance

36. External Loan Services to Reserves Ratio

37. Debt to GDP Ratio, Some Countries & The Changes

38. Debt per Capita, of Some Countries

39. Debt per Capita, of Some Countries & The Changes

40. Debt Risk Indicators, 2008-2012

Table of Contents


Chapter5Costs of Borrowing (Debt Services, Cost of Fund, YieldCurve, External Debts Cost)

41. Debt Services Realizations, Fiscal Year 2013

42. Debt Services Realizations, Fiscal Year 2013 (Chart)

43. Interest Payment to Debt Ratio

44. Interest Payment Realization

45. Terms and Conditions of Loan from Multilateral

46. Terms and Conditions of Loan from Bilateral (Japan)

47. Domestic Government Debt Securities Yield Curve

48. Indonesian Global Bond Yield Curve

Chapter 6Performance of Secondary Market for Govt. Securities(Trading Volume, Govt. Securities Ownership Structure)

49. Average Daily Trading of Domestic Govt. Securities

50. Government Debt Securities Ownership

51. Domestic Debt Government Securities Ownership


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60. Indonesia Sovereign Credit Rating Performance(1)

61. Indonesia Sovereign Credit Rating Performance(2)

62. Government Guarantee Outstanding and BudgetAllocation

63. BPK Opinion on Government Financial Report

64. Conclusion

Table of Contents


52. Domestic Debt Government Securities Ownership( in % )

53. Foreign Ownership of Domestic GovernmentSecurities by Tenor

54. Spread over UST- Jan 18

55. Spread over UST- Feb 22

56. Spread over UST- Feb 42

Chapter 7

Rating, Government Guarantee, Supreme Audit Agency(BPK) Opinion, Conclusion

57. Credit Rating of Indonesia

58. Indonesia Credit Rating Performance (1)

59. Indonesia Credit Rating Performance (2)


5/76Ministry of Finance Republic of IndonesiaKementerian Keuangan Republik Indonesia

Chapter 1

Background, Debt Management Strategy and

Objective, Debt Instruments, Legal Basis


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Background (1)


Debt management and policy is an integral part of fiscal policy which alsoconstructs 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 inmost 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.



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Background (2)

Kementerian Keuangan Republik IndonesiaKementerian Keuangan Republik Indonesia

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 madeby 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 peoples welfare program such as PNPM, BOS, Jamkesmas, Raskin, PKH, subsidy;

Supporting real sectors 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.



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Ministry of Finance Republic of IndonesiaKementerian Keuangan Republik Indonesia

Debt Management Strategy and Objective

Objectives

Long-term :

Securing Government Budget debt financing needs at minimum cost and tolerable risk level, thusfiscal 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 ina 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 riskinstrument;

utilizing foreign loans to finance priority projects, at favorable terms & conditions for the Government, andwithout 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 financialdeepening;

improving coordination and communication with various parties to enhance the efficiency of loanmanagement and improve sovereign credit rating



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Debt Instruments (1)


Government Loan consists of external and domestic loans: External Loan

World Bank, Asian Development Bank, Islamic Development Bank and bilateraldonors (Japan, Germany, France, etc.) and Export Credit. Program Loan:

Intended for budget support. Its disbursement is a function of the realization of statedpolicy matrix aiming at the targets set up in MDGs scheme (poverty alleviation,education, and corruption eradication), people empowerment and also policy relatedwith climate change and infrastructure development.

Project Loan :To support infrastructure project in transportation, energy etc and also povertyalleviation 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 forpublic service and investment generating revenue project.



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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 Indonesias recap

and restructuring of banking industry Zero coupon

Government Islamic securities/Sukuk (SBSN) in domestic and foreigncurrency denominated in the scheme of Ijarah, Musyarakah, Istisna,etc Islamic T-Bills;

IFR/Ijarah Fixed Rate; Global Sukuk; SDHI/Indonesian Haj Fund Sukuk; Project BasedSukuk (PBS).



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Chapter 2

State Budget, Deficit and Its Financing



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State Budget (APBN) 20082013


[ in Trillion IDR ]


LKPP LKPP LKPP LKPP BUDGET-R 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 1,154.4a. 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


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Financing Cash flow 2008-2013

Kementerian Keuangan Republik IndonesiaKementerian Keuangan Republik IndonesiaMinistry of Finance Republic of Indonesia

[ in Billions IDR ]

LKPP

2008

LKPP

2009

LKPP

2010

LKPP

2011

BUDGET -R

2012

BUDGET

2013

Financing Needs (99,720) (236,975) (203,538) (245,479) (386,124) (342,312)Budget Deficit (4,121) (88,619) (46,846) (84,399) (190,105) (153,338)

Debt Repayment (108,958) (120,145) (135,893) (138,818) (169,121) (166,044)

Bond Redemptions and Buybacks (40,333) (49,067) (76,532) (87,272) (110,823) (100,421)

Foreign Loan Amortization (63,435) (68,031) (50,633) (47,323) (49,725) (58,405)

Domestic Loan Amortization - - - - (141) (250)

On Lending (5,189) (3,047) (8,729) (4,224) (8,432) (6,968)

Non Debt Financing Needs 13,359 (28,211) (20,799) (22,262) (26,898) (22,929)

Financing Sources 179,670 260,939 248,243 292,029 386,124 342,311

Debt 176,468 207,200 222,822 241,503 325,283 327,530

Government Securities Issuance, Gross 126,249 148,538 167,634 207,136 270,419 280,861

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 45,919

Program Loans 30,100 28,938 28,975 15,266 15,604 6,510

Project Loans to Central Government 14,929 26,678 17,091 14,257 29,695 32,441

Project Loans On Lending 5,189 3,047 8,729 4,224 8,432 6,968

Domestic Loan Disbursements - - 394 619 1,132 750

Non Debt 3,202 53,740 25,421 50,526 60,842 14,782

Financing Surplus (Deficit) 79,950 23,965 44,706 46,549 (0) (0)Net Financing Cash Flows 84,072 112,583 91,552 130,949 190,105 153,338

Net Debt 67,510 87,055 86,929 102,685 156,162 161,486

Governm ent Secur it ies 85,916 99,471 91,102 119,864 159,596 180,440

Foreign Loans (18,406) (12,416) (4,566) (17,799) (4,426) (19,454)

Domestic Loans - - 394 619 991 500

Net Non Debt 16,561 25,528 4,622 28,264 33,943 (8,148)


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86 9

9

91

120

160 1

80

(18

)

(12) (

4)

(17

) (3)

(19)

1726

5

28 34

(8)(4)

(89)

(47)

(84)

(190)

(153)

(0.1)

(1.6)

(0.7)

(1.1)

(2.2)

(1.7)

(4)

(3)

(2)

(1)

-

1

2

3

4

(200)

(180)

(160)

(140)

(120)

(100)

(80)

(60)

(40)

(20)

0

20

40

60

80

100

120

140

160

180200

2008 2009 2010 2011 2012* 2013**

[ % to GDP][Trillion Rupiah]

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


Fiscal Deficit and State Budget Financing 2008-2013

Source: Ministry of Finance

Since 2005, government securities have played role as a primary instrument offinancing

Refinancing strategy to achieve a better debt profile explains the movement ofgovernment securities in 2008-2013.


Notes :2008-2011 Audited* BUDGET-R 2012** BUDGET



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Deficit in Various Countries 2008-2013

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 of3% of GDP. In consequence, additional debt to finance fiscal deficit is also limited.


-14.0

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

2008 2009 2010 2011 2012 2013

Brazil China Indonesia Japan

Mexico Russia United Kingdom United States

Notes :

- in % to GDP- For Indonesia, Year 20082011 are the audited (LKPP) numbers, 2012 are APBN-P numbers and 2013 are the budget (APBN) numbers

Source: International Monetary Fund, World Economic Outlook Database, October 2012 & Ministry of Finance



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Budget and Realization of Debt Financing 2013

Notes:

*) Provisional

- Securities issuance budget is tentative, depend on financing need in term of securities portfolio managementMinistry of Finance Republic of Indonesia

(in billion IDR)

Nominal %

(1) (3) (6)=(4)+(5) (7) = (6) : (3) (8) = (3) - (6) (9) = (8) : (3)

A. Expenditures 113,243.8 26,348.5 23.3 86,895.3 76.7

1 Domestic Interest Payments 80,703.3 18,865.0 23.4 61,838.3 76.6

- Securities 80,613.2 18,865.0 23.4 61,748.2 76.6

- Domestic Loans 90.1 - - 90.1 100.0

2 External Interest Payments 32,540.5 7,483.4 23.0 25,057.1 77.0

- External Loans 15,216.2 2,208.2 14.5 13,008.0 85.5

- Global Bonds / Securities in valas 17,324.3 5,275.3 30.5 12,049.0 69.5

B. FinancingI Domestic Financing

A. Domestic Loans (Net) 500.0 24.5 4.9 475.5 95.1

B. Net Securities 180,439.9 40,011.7 22.2 140,428.2 77.8

II External Financing (Net) (19,454.2) (7,396.5)

1. External Loan Disbursement (Gross) 45,919.1 1,746.4 3.8 44,172.7 96.2

a. Program Loan 6,510.0 37.7 0.6 6,472.3 99.4

b. Project Loan 39,409.1 1,708.7 4.3 37,700.4 95.7

1. Central Government Project Loan 32,440.8 1,246.1 3.8 31,194.7 96.2

2. On Lending 6,968.3 462.6 6.6 6,505.7 93.4

2. On Lending (Spending) (6,968.3) (462.6) 6.6 (6,505.7) 93.4

3. External Loan Amortization (58,405.0) (8,680.2) 14.9 (49,724.8) 85.1

Nominal %

(2)

No. Description BudgetRealization *)

as of March 28, 2013

rest of budget

li i f G S i i 20 3


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Realization of Government Securities Issuance 2013


* Adjusted by changes in Cash Management & Debt Switch

(in million IDR)

Description TargetRealization Nominal

(as of March 28, 2013)

%

Realization

Government Securities-Net (Budget

2013)180.439.900 40.011.717 22,17%

Government Securities Maturity 2013 85.620.835 28.934.586 33,79%

Buyback 3.000.000 37.572 1,25%

Issuance Need* 280.860.735 68.983.875 24,56%

49.800.000

49.800.000

41.000.000

8.800.000

19.183.875

19.183.875

4.215.000

14.968.875

International Sukuk

Government Islamic Debt Securities

Domestic Government Islamic Debt Securities

- IFR/PBS (- Islamic Fixed Rate Bond/Project

Based Sukuk (IFR/PBS))- SPN-S

- SBSN Ritel

- SDHI

Government Debt Securities (GDS)

Domestic GDS

- ON

- SPN

- ORI

International Bonds

L D i b T f Fi i 2008 2013


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Loan Drawing by Type of Financing, 2008-2013


*) Provisional (Unaudited)

[in Trillions IDR]

Nominal % of Budget

TOTAL 50.22 58.66 55.19 34.37 31.95 46.42 1.77 3.8%

in bil l ion US$ 4.59 6.24 5.51 3.79 3.35 4.99 0.18

30.10 28.94 28.97 15.27 14.98 6.51 0.04 0.6%

in bill ion US$ 2.75 3.08 3.22 1.68 1.57 0.70 0.00

a. World Bank 12.91 14.65 15.34 10.76 8.61 4.65 0.04 0.8%

b. A D B 9.17 5.06 6.39 3.63 5.80 1.86 - 0.0%

c. JAPAN 4.87 6.07 4.59 0.87 - - - 0.0%

d. FRANCE 2.20 2.79 2.73 - - - - 0.0%

e. IDB - - - - 0.57 - - 0.0%

f. Others - - - - - - - 0.0%

20.12 29.72 25.82 18.48 16.05 39.41 1.71 4.3%

in bill ion US$ 1.84 3.16 2.87 2.04 1.71 4.24 0.18

- - 0.39 0.62 0.93 0.50 0.02 4.9%

in bill ion US$ - - 0.04 0.07 0.07 0.05 0.00

LKPP/

Audited2008

2013

Budget

LKPP/

Audited2009

Real. As of March 28,LKPP/

Audited2010

LKPP/

Audited2011

2012 *

3. Domestic Loan

2. Project Loan

TYPE OF FINANCING

1. Program Loan

P L 2008 2013


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Program Loan 2008-2013

Kementerian Keuangan Republik IndonesiaKementerian Keuangan Republik IndonesiaSource : Directorate of External Debt and Grant


[ in Million USD]

2008 2009 2012

Real Real Real BUDGET

Real - as of

March 28,

2013

A. WORLD BANK 1,197 1,553 1,704 1,011 907 500 3.9

-

B. ASIAN DEVELOPMENT BANK 830 500 700 400 600 200 -

C. JICA, JAPAN 500 600 505 100 - - -

D. ISLAMIC DEVELOPMENT BANK - - - - 59 - -

TOTAL 2,727 2,953 3,209 1,511 1,566 700 3.9

2010 2011 2013

LENDERS

E t l L Fi i 2008 2013


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Notes :

*) Budget 2013

External Loan Financing 2008 - 2013


45.0

55.6

46.1

29.5

45.3

39.0

-63.4-68.0

-50.6 -47.3 -49.7-58.4

-18.4-12.4

-4.6

-17.8

-4.4

-19.5

-90

-70

-50

-30

-10

10

30

50

70

2008 2009 2010 2011 2012 2013*

External Loan Disbursement, gross External Loan Principal Repayment External Loan Financing (nett)

[in

trillion

IDR

]

[ in trillion IDR ]

2008 2009 2010 2011 2012 2013*

External Loan Disbursement, gross 45.03 55.62 46.07 29.52 45.30 38.95External Loan Principal Repayment (63.44) (68.03) (50.63) (47.32) (49.73) (58.41)

External Loan Financing (nett) (18.41) (12.42) (4.57) (17.80) (4.43) (19.46)

Loan Disbursement 2013 Project Financing


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Loan Disbursement 2013 - Project Financing


Million USD Billion IDR Million USD Billion IDR

A. Int'l Organization 69.19 670.30 1.6%

WORLD BANK (IBRD & IDA) 49.03 473.33 1.2%

A D B 10.01 97.29 0.2%

I D B 5.90 58.51 0.1%

I F A D 4.25 41.18 0.1%

B. Country 106.44 1,038.41 2.5%

JAPAN 23.69 236.33 0.6%

GERMANY 10.68 103.30 0.3%

AUSTRIA 4.49 43.37 0.1%

FRANCE 8.38 80.74 0.2%

SINGAPORE 9.41 91.26 0.2%

SPAIN 0.19 1.86 0.0%

OTHERS 49.61 481.55 1.2%

TOTAL 4,237.54 39,409.10 175.63 1,708.71 4.1%

NEGARA

BUDGET Real. As of March 28, 2013

% to BUDGET

Loan Disbursement 2013 Project Financing (chart)


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Loan Disbursement 2013 - Project Financing (chart)

[ in billion IDR ] [ % of Project Loan ]


1.2%

0.2%

0.1% 0.1%

0.6%

0.3%

0.1%

0.2% 0.2%

0.0%

1.2%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

-

100

200

300

400

500

600

Disbursement % to Budget (RHS)

Million USD Billion IDR Million USD Billion IDR

TOTAL 4,237.54 39,409.10 175.63 1,708.71 4.14%

% to

BUDGETNEGARA

BUDGET Real. As of March 28, 2013


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Ministry of Finance Republic of IndonesiaKementerian Keuangan Republik IndonesiaKementerian Keuangan Republik Indonesia

Chapter 3

Debt Portfolio(Outstanding, Maturity Profile,

Change in Securities and Loans Positions)


Government Debt Outstanding 2008 2013


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Government Debt Outstanding, 2008-2013

Notes :

* Semi commercials included

** Some semi comm ercials included

*** CommercialsMinistry of Finance Republic of Indonesia

#) Pr ov is io nal##) Very Pr ov is io nal

2008 2009 2010 2011 2012#)Nominal %

Central Govt. Debt Total ( in trillion IDR) 1,636.74 1,590.66 1,681.66 1,808.95 1,975.42 1,991.22 100.0%

a. Loans (in trillion IDR) 730.25 611.20 617.25 621.29 614.32 590.20 29.6%1). External Loan 730.25 611.20 616.86 620.28 612.52 588.38

Bilateral *) 484.90 387.92 380.67 381.66 358.12 336.74 16.9%

Multilateral **) 222.69 202.37 208.28 212.96 229.68 227.67 11.4%

Commercial ***) 21.69 20.24 27.34 25.15 24.32 23.62 1.2%

Suppliers ***) 0.97 0.66 0.57 0.50 0.41 0.35 0.0%

Others ***) - - - - - - 0.0%

2). Domestic Loan - - 0.39 1.01 1.80 1.82

b. Securities (in trillion IDR) 906.50 979.46 1,064.40 1,187.66 1,361.10 1,401.01 70.4%Foreign Currency 122.64 143.15 161.97 195.63 264.91 264.81 13.3%

Local Currency 783.86 836.31 902.43 992.03 1,096.19 1,136.21 57.1%

Central Govt. Debt Total

(In bil l ion US$)

149.47 169.22 187.04 199.49 204.28 204.88 100.0%

Consis t of :

Local Curr ency Securit ies (in bil l ion US$) 71.58 88.97 100.37 109.40 113.36 116.91 57.1%

Foreign Currency Securities (in bil l ion US$) 11.20 15.23 18.02 21.57 27.39 27.25 13.3%

Local Currency Loan (in bil l ion US$)- - 0.04 0.11 0.19 0.19 0.1%

Foreign Curr ency Loan (in bil l ion US$) 66.69 65.02 68.61 68.40 63.34 60.54 29.5%

Exchange Rate (IDR to US$1) 10,950 9,400 8,991 9,068 9,670 9,719

March 2013 ##)

Government Debt Outstanding 2008-2013 (chart)


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Government Debt Outstanding, 2008-2013 (chart)

Notes :

*) Provisional

**) Very Provisional, As of March 28, 2013Ministry of Finance Republic of Indonesia

906 9791,064

1,1881,361 1,401

730 611617

621

614 590

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2008 2009 2010 2011 2012*) 2013**)

Loans Securities

[ in Trillions IDR ]

[ in trillion IDR and % ]

Year

Loans 730 45% 611 38% 617 37% 621 37% 614 31% 590 30%

Securities 906 55% 979 62% 1,064 63% 1,188 63% 1,361 69% 1,401 70%

Central Govt. Debt

Total1,637 100% 1,591 100% 1,682 100% 1,809 100% 1,975 100% 1,991 100%

2013**)2012*)20102009 20112008

Debt Maturity Profile as of March 28 2013


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Debt Maturity Profile as of March 28, 2013

Kementerian Keuangan Republik IndonesiaMinistry of Finance Republic of Indonesia

61

95

85

75

59

88

69

82

77

108

56

33 4

4

22

4743

3

29

31

47

33

5

21

10

37 4

3

8

90

45

55

53

49

43

42

41

4035

30

25

21

18

15

1310

9

8 8

87

5

3

2

11

1

2

-

20

40

60

80

100

120

140

160

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040-2055

Loans Securities

[in Trillions IDR]

Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Loans 42% 37% 38% 40% 42% 32% 37% 33% 32% 22% 31% 39% 29% 41% 21%

Securities 58% 63% 62% 60% 58% 68% 63% 67% 68% 78% 69% 61% 71% 59% 79%

Year 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039

Loans 20% 74% 22% 21% 15% 18% 49% 12% 14% 3% 2% 6%

Securities 80% 26% 78% 79% 85% 82% 51% 88% 86% 97% 98% 94%

2%

98%

2040-2055


28/76

Loans Outstanding by Creditor Types


29/76


Loans Outstanding by Creditor Types

*)

Notes :*) Global Bonds excluded.


[ in trillion IDR ]

Nominal % Total

EXTERNAL LOAN 730.25 611.20 616.86 620.28 612.52 588.38 99.7%

1. BILATERAL 484.90 387.92 380.67 381.66 358.12 336.74 57.1%

a. Japan 324.28 259.50 274.47 280.45 254.64 235.16 39.8%

b. France 27.86 25.56 21.88 20.90 21.30 21.03 3.6%

c. Germany 37.80 28.34 22.65 20.29 20.00 19.43 3.3%

d. Other Bilateral 94.96 74.52 61.68 60.02 62.18 61.12 10.4%

2. MULTILATERAL 222.69 202.37 208.28 212.96 229.68 227.67 38.6%

a. World Bank 98.16 94.96 102.23 108.73 122.14 122.38 20.7%

b. ADB 118.99 102.32 100.40 97.92 100.34 98.24 16.6%

c. IDB 2.81 2.96 3.76 4.23 5.05 4.93 0.8%

d. Other Multilateral 2.73 2.13 1.89 2.09 2.14 2.12 0.4%

3. COMMERCIAL 21.69 20.24 27.34 25.15 24.32 23.62 4.0%

4. SUPPLIERS 0.97 0.66 0.57 0.50 0.41 0.35 0.1%

DOMESTIC LOAN 0.39 1.01 1.80 1.82 0.3%

TOTAL*) 730.25 611.20 617.25 621.29 614.32 590.20 100.0%

2008AS of March 28, 2013

2009 2010 2011 2012COUNTRIES

Loans Outstanding by Creditor Types (chart)


30/76


Loans Outstanding by Creditor Types (chart)

Multilateral (World Bank, ADB) and Bilateral (Japan) external loan are long matured &relatively cheap financing sources alternatives


44% 42% 45% 45% 41% 40%

13%16% 17% 18% 20% 21%

16% 17% 16% 16% 16% 17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011 2012 March 2013

Japan France Germany Other Bilateral World Bank

ADB IDB Other Multilateral COMMERCIAL SUPPLIERS

Loans Outstanding by Economic Sectors


31/76


g y

Notes :

*) As of March 28, 2013

- Economic Sectors Classification by Bank Indonesia and National Statistics Agency

- Financial Sector is program loan dominated

Source : Ministry of Finance & Bank Indonesia


[ in billion IDR ]

2008 2009 2010 2011 2012 2013 *)

Agriculture, Husbandry, Forestry & Fishing 17,683 16,773 19,946 19,593 13,881 16,594

Mining & Drilling 8,801 7,294 7,620 7,479 5,671 6,566

Manufacturing 29,121 21,534 19,946 18,483 14,916 13,796

Electricity, Gas & Water Works 74,873 51,442 53,408 53,145 43,607 46,029

Housing & Building 122,039 115,160 113,448 114,340 95,764 105,784

Trading, Hotel & Restaurant 10,510 7,717 6,990 6,290 5,276 4,969Transport & Communication 29,814 22,257 21,476 20,001 17,516 19,173

Financial, Leasing and Financial Services 96,005 81,995 86,422 88,092 57,559 96,825

Services 167,009 145,353 153,544 163,684 237,653 163,707

Other Sectors 174,391 141,673 134,452 130,185 122,479 116,762

TOTAL 730,246 611,198 617,252 621,292 614,322 590,205

Loans Outstanding by Economic Sectors (chart)


32/76


Loans Outstanding by Economic Sectors (chart)


Source : Ministry of Finance & Bank Indonesia

17,683

16,773

19,946

19,593

13,881

16,594

8,801

7,294

7,620

7,479

5,671

6,566

29,121

21,534

19,946

18,483

14,916

13,7967

4,873

51,442

53,408

53,145

43,607

46,029

122,039

11

5,160

11

3,448

11

4,340

95,764

105,

784

10,510

7,717

6,990

6,290

5,276

4,969

29,814

22,257

21,476

20,001

17,516

19,173

96,005

81,995

86,422

88,092

57,559

96,82

5

167,009

145,353

153,544

163,684

237,65

3

163,707

174,391

141,673

134,452

130,185

122,479

116,762

-

50,000

100,000

150,000

200,000

250,000

2008 2009 2010 2011 2012 2013 *)

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

[ in billion IDR ]

Notes : *) As of March 28, 2013

Government Debt Outstanding - Main Currencies


33/76


g

Notes :*) IDR Currency in Trillion IDR, **) in Billions, ***) As of March 28, 2013


2008 2009 2010 2011 2012 2013***

in original currencies

IDR*) 783.86 836.31 902.82 992.84 1,097.99 1,138.03

USD**) 32.55 35.80 39.77 44.35 49.78 49.67

JPY**) 2,820.48 2,713.84 2,698.75 2,585.42 2,498.81 2,500.46

EUR**) 6.75 5.97 5.44 4.71 4.49 4.45

SDR**) 1.74 2.01 2.15 2.19 2.17 2.16

AUD**) 0.14 0.24 0.29 0.33 0.39 0.40

Other Currencies

in trillion IDR

IDR 783.86 836.31 902.82 992.84 1,097.99 1,138.03

USD 356.46 336.54 357.61 402.16 481.33 482.70

JPY 341.90 276.01 297.62 301.98 279.77 258.12

EUR 104.15 80.68 64.99 55.30 57.53 55.33

SDR 29.44 29.57 29.83 30.44 32.39 31.38

AUD 1.08 2.05 2.66 3.05 3.88 4.07

Other Currencies 19.86 29.49 26.13 23.18 22.54 21.59

Total 1,636.74 1,590.66 1,681.66 1,808.95 1,975.42 1,991.22

Mid Rate IDR to US$1 10,950.00 9,400.00 8,991.00 9,068.00 9,670.00 9,719.00

Mid Rate JPY to US$1 90.33 92.42 81.53 77.64 86.37 94.15

Mid Rate EUR to US$1 0.71 0.70 0.75 0.77 0.75 0.78

-------------------------- Other Currencies --------------------------

Government Debt Outstanding - Other Currencies


34/76


Notes :*) in Billions, **) As of March 28, 2013

g


2008 2009 2010 2011 2012 2013**

in original currencies

ACU*) 0.02 0.20 0.27 0.30 0.34 0.34

ADB*) 0.20 0.16 0.14 0.13 0.11 0.10

CAD*) 0.18 0.17 0.16 0.15 0.14 0.14

CHF*) 0.38 0.33 0.30 0.27 0.24 0.24

CNY*) 0.00 0.00 1.43 1.55 1.55 1.55

DKK*) 0.07 0.06 0.05 0.05 0.04 0.04

GBP*) 0.58 0.51 0.46 0.41 0.36 0.36

KRW*) 168.47 184.82 184.32 196.63 205.44 212.59

KWD*) 0.01 0.01 0.01 0.01 0.01 0.01

SAR*) 0.14 0.13 0.12 0.11 0.10 0.10

WBD*) 0.00 1.12 0.71 0.42 0.21 0.17

in trillion IDR

ACU 0.38 2.90 3.69 4.22 5.05 4.93

ADB 2.19 1.50 1.30 1.16 1.06 0.99

CAD 1.60 1.49 1.41 1.31 1.35 1.33

CHF 3.94 3.02 2.83 2.62 2.55 2.45

CNY 0.00 0.00 1.94 2.23 2.38 2.40

DKK 0.15 0.10 0.08 0.07 0.07 0.07

GBP 9.15 7.69 6.36 5.77 5.66 5.33

KRW 1.46 1.49 1.47 1.54 1.86 1.86

KWD 0.59 0.43 0.37 0.20 0.30 0.30

SAR 0.41 0.32 0.28 0.26 0.26 0.26

WBD 0.00 10.56 6.39 3.78 1.99 1.67

TOTAL 19.86 29.49 26.13 23.18 22.54 21.59

Government Debt Outstanding by Currencies(chart)


35/76


Notes :*) As of March 28, 2013


48%53% 54% 55% 56%

57%

22%21% 21%

22% 24%24%

21%17% 18% 17%

14% 13%

6% 5% 4% 3%3% 3%

2% 2% 2% 2% 2% 2%1% 2% 2% 1% 1% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011 2012 2013*)

IDR USD JPY EUR SDR AUD Others

Loans Drawing Proportion by Financing Type


36/76


Notes :*) LKPP - Audited**) Provisional***) Budget 2013


[ in trillion IDR] [ % ]


28.

57

28.

97

15.

27

15.

60

6.

51

23.

54

25.

82

18.

48

38.

13

39.

41

0.7

5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

-

5

10

15

20

2530

35

40

2009* 2010* 2011** 2012** 2013***PROGRAM LOAN PROJECT LOAN DOMESTIC LOAN

% PROGRAM LOAN (RHS) % PROJECT LOAN (RHS) % DOMESTIC LOAN (RHS)

[in trillion IDR]

TYPE OF LOANS 2008* % 2009* % 2010* % 2011* % 2012** % 2013*** %

PROGRAM LOAN 30.10 60% 28.94 49% 28.97 53% 15.27 44% 15.60 28% 6.51 14%

PROJECT LOAN 20.12 40% 29.72 51% 25.82 47% 18.48 54% 38.13 69% 39.41 84%

DOMESTIC LOAN - 0% - 0% 0.39 1% 0.62 2% 1.13 2% 0.75 2%

TOTAL 50.22 58.66 55.19 34.37 54.86 46.67


37/76


Chapter 4

Debt Portfolio Management Performance

(Debt Performance Measurement andComparison, Loan Disbursement, Government

Debt Securities Re-profiling)


Central Government Debt to GDP Ratio


38/76

Kementerian Keuangan Republik IndonesiaKementerian Keuangan Republik IndonesiaKementerian Keuangan Republik IndonesiaKementerian Keuangan Republik Indonesia

Sources: Ministry of Finance and National Statistics Agency, processed data

Notes :*) Provisional**) BUDGET 2013


14.7% 10.9%

9.6% 8.4% 7.5% 6.4%

18.3%17.4%

16.5% 16.0% 16.5% 16.6%

33.0%

28.3%26.1%

24.4% 24.0%

23.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2008 2009 2010 2011 2012*) 2013**)

Loans Securities GDP

Loan to GDP Ratio (RHS) Securities to GDP Ratio (RHS) Total Debt to GDP Ratio (RHS)

[ in Trillions IDR] [ %]

[ in trillions IDR ]

2008 2009 2010 2011 2012*) 2013**)

730 611 617 621 614 595

906 979 1,064 1,188 1,361 1,542

1,637 1,591 1,682 1,809 1,975 2,137

4,954 5,613 6,443 7,427 8,242 9,270

Loans

Securities

Total

GDP

Debt to GDP Ratio,Indonesia & some Countries


39/76


Indonesia & some Countries


Notes :- Nominal in % to GDP

- Indonesia data: taken from audited Government Financial Statements

The debt rises of Developed Countries are greater than those of Developing Countries

Source: IMF, World Economic Outlook Database, October 2012 & Ministry of Finance


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 24.0

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

Maturity Profile of Tradable Securitiesas of March 28 2013


40/76

as of March 28, 2013


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 52,62 77,80 77,16 66,67 49,63 76,62 56,50 69,11 60,18 91,71 42,45 18,01 28,02 19,61 44,28 39,82 25,68 27,10 42,80 28,65 15,55 4,11 29,72 35,12 13,55 33,87

SUKUK USD - 6,32 - - - 9,72 - - - 9,72 - - - - - - - - - - - - - - - -

SUKUK IDR 2,17 7,34 18,96 14,97 1,17 8,66 - 0,25 - 1,22 - - 1,55 - 2,88 - 2,18 - - - - 4,11 8,74 - - -

SUN JPY - - - - - - 3,61 6,19 - 6,19 - - - - - - - - - - - - - - - -

SUN USD - 22,35 9,72 8,75 9,72 18,47 19,44 19,44 24,30 19,44 - - - - - - - - - - 15,55 - 14,58 19,44 - 21,87

SUN IDR 50,45 41,79 48,48 42,95 38,74 39,78 33,45 43,22 35,88 55,14 42,45 18,01 26,47 19,61 41,40 39,82 23,50 27,10 42,80 28,65 - - 6,40 15,69 13,55 12,00

-

20,00

40,00

60,00

80,00

100,00

Debt Switching and Buyback


41/76


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

Debt Switching : debt management program to reduce refinancing risk


Year Auction FrequencyTenor of Source Bonds

(Year)

Destination Bonds

(Yaer)

Volume of Bid

Accepted (billion

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





2011 4 < 1 year s.d. 4 year 15 year 664


2013 1 < 1 year s.d. 5 year 10 year 616

Total 77,202

Year Auction FrequencyTenor of Series to be

Buyback (Year)

Volume of Buyback

Accepted (billion IDR)

2003 2 1 year up to 3 year 8.127

2004 1 3 year up to 5 year 1.962

2005 4 < 1 year up to 4 year 5.158

2007 2


42/76


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)Ministry of Finance Republic of Indonesia

Title

1 2 3

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

for Micro and Small Enterprises Project

EUR 6.3 EUR 12.5 EUR 3.2

Debt Swap IIIb Strengthening the Development of National Parks in

Fragile Ecosystems

EUR 6.3 EUR 12.5 EUR 0.0

Debt Swap IV School Reconstruction and Rehabili tation in

Earthquake Area in Yogyakarta and Central Java

EUR 10.0 EUR 20.0 EUR 20.0

Debt Swap V Global Fund to Fight AIDS, Tubercolosis and Malaria

(GFATM)

EUR 25.0 EUR 50.0 EUR 50.0

Debt Swap VII Indonesian - German Scholarship Program EUR 9.4 EUR 18.8 EUR 0.0

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 15.7 *)

Debt Development Swap Tropical Forest Conservation Act/TFCA II USD 23.8 USD 29.5 USD 8.1

Australia Debt Swap Debt2Health AUD 37.5 AUD 75.0 AUD 15.6

EUR 87.0 EUR 168.0 EUR 127.5

USD 68.0 USD 83.6 USD 48.0

AUD 37.5 AUD 75.0 AUD 15.6

218.2 376.6 227.2

TOTAL

TOTAL in million USD

4 5 6

Germany

Italy Debt Swap I Housing and Setlement

Country Debt Swap

Project Cancelation

Amount Commitment Realization

[in Millions]

Loans Disbursement Performance


43/76


Notes :- Nominals between 2008 until 2013 have been cumulatively calculated since January 1, 2008.- Net commitment = signed loans; disbursement = disbursed loans.


0

50

100

150

200

250

300

Net Commitment Disbursement Undisbursed

[in Trilions IDR]

[in trillion IDR]

YearCumulative 1967

to 20072008 2009 2010 2011 2012 2013

Cumulative 1967

to 2013

Net Commitment 1,711.8 55.2 143.9 197.0 239.8 326.4 335.6 2,047.5

Disbursement 1,620.9 52.8 91.7 129.3 146.0 159.1 160.6 1,781.5Undisbursed 90.9 2.4 52.2 67.8 93.8 167.3 175.0 265.9

External Loan Services to Reserves Ratio


44/76


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.

16.8%

17.9%

9.0%

7.4%7.9%

8.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

2008 2009 2010 2011 2012* 2013**

Debt to GDP Ratio,Some Countries & The Changes


45/76

Indonesian debt per capita is among the lowest compared to those ofdeveloped countries with the fastest/biggest decrease


Public Debt, 2012(in % of GDP) Public Debt, changes 2003-2012(in % of GDP)

Source: IMFMinistry of Finance Republic of Indonesia

0 50 100 150 200 250

Chile

Indonesia

Australia

Colombia

Turkey

South Africa

Philippines

Thailand

Malaysia

Poland

Brazil

India

Germany

United KingdomUnited States

Italy

Japan

-100 -50 0 50 100

Indonesia

Australia

Turkey

Philippines

Colombia

Chile

Thailand

South Africa

Brazil

India

Poland

Malaysia

Italy

GermanyJapan

United States

United Kingdom

Debt per Capita of Some Countries


46/76


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 ofnon-investment grade rating

Kementerian Keuangan Republik IndonesiaSource: IMF


0

20,000

40,000

60,000

80,000

100,000

120,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2007 2008 2009 2010 2011 2012

Brazil Poland Chile India Philippines Indonesia Japan (RHS)

In US Dolar In US Dolar

Debt per Capita,Some Countries & The Changes


47/76

g

Indonesian debt per capita is among the lowest and it is considered tofluctuate insignificantly


Public Debt per Capita, 2012(in US$) Public Debt per Capita, changes 2003-2012(in %)

Source: IMFMinistry of Finance Republic of Indonesia

- 20,000 40,000 60,000 80,000 100,000 120,000

IndonesiaIndia

Philippines

Chile

Thailand

Colombia

South Africa

Turkey

MalaysiaBrazil

Poland

United Kingdom

United States

Japan

0% 100% 200% 300%

PhilippinesIndonesia

Turkey

South Africa

Japan

Thailand

United States

Chile

ColombiaMalaysia

Poland

India

Brazil

United Kingdom

Debt Risk Indicators,2008-2012


48/76


Notes:

*) The 2012 projection figures are based on realization per December 2012.Source: Ministry of Finance


22.9 22.020.3

18.8

16.1

28.2 28.226.1 25.9

22.4

2008 2009 2010 2011 2012

Interest Rate Risk

Variable rate ratio [%] Refixing rate [%]

17.213.4 12.1 11.0 10.6

52.147.4 46.2 45.1 44.4

2008 2009 2010 2011 2012

Exchange Rate Risk

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

10.0

9.7

9.5

9.3

9.7

2008 2009 2010 2011 2012

Average Time To Maturity (ATM)

Average Time to Maturity

6.4 7.6 7.18.2 7.2

18.620.3 20.8

22.7 21.5

31.133.2 34.2 34.6 32.4

2008 2009 2010 2011 2012

Debt Maturing in 1, 3 and 5 Years

Maturity debt portion < 1 year (%) Maturity debt portion < 3 year (%)

Maturity debt portion < 5 year (%)


49/76


Chapter 5

Costs of Borrowing

(Debt Services, Cost of Fund, Yield Curve,

External Debts Cost)


Debt Services RealizationsFiscal Year 2013


50/76

Ministry of Finance Republic of IndonesiaKementerian Keuangan Republik IndonesiaMinistry of Finance Republic of Indonesia

Notes :- Provisional, realization as of March 28, 2013

[ in billion Rupiah ]

January February March Q-1 Total

I. POKOK 186,464 7,882 15,535 14,894 38,311 38,311 20.55%

A. PINJAMAN 58,655 2,915 2,210 3,556 8,680 8,680 14.80%

a. Pinjaman Dalam Negeri 250 - - - - 0.00%

b. Pinjaman Luar Negeri 58,405 2,915 2,210 3,556 8,680 8,680 14.86%

B. SURAT BERHARGA NEGARA 127,809 4,968 13,325 11,338 29,630 29,630 23.18%

1. SBN Rupiah 123,809 4,968 13,325 11,338 29,630 29,630 23.93%

a. SUN 109,025 4,966 5,250 11,338 21,554 21,554 19.77%

b. SBSN 14,784 2 8,075 - 8,076 8,076 54.63%

2. SBN Valas 4,000 - - - - - 0.00%

a. SUN 4,000 - - - - - 0.00%

b. SBSN - - - - - - 0.00%- -

II. BUNGA 113,244 10,686 5,863 9,800 26,348 26,348 23.27%

A. PINJAMAN 15,306 802 689 717 2,208 2,208 14.43%

a. Pinjaman Dalam Negeri 90 - - - - 0.00%

b. Pinjaman Luar Negeri 15,216 802 689 717 2,208 2,208 14.51%

B. SURAT BERHARGA NEGARA 97,937 9,883 5,174 9,083 24,140 24,140 24.65%

1. SBN Rupiah 80,613 7,547 4,692 6,627 18,865 18,865 23.40%

a. SUN 70,543 6,918 3,407 5,852 16,177 16,177 22.93%

b. SBSN 10,070 629 1,285 775 2,688 2,688 26.70%

2. SBN Valas 17,324 2,337 483 2,456 5,275 5,275 30.45%a. SUN 15,904 2,337 483 2,456 5,275 5,275 33.17%

b. SBSN 1,420 - - - - - 0.00%

III. TOTAL POKOK + BUNGA 299,708 18,568 21,398 24,693 64,659 64,659 21.57%

Budget

Payment Realization *)

% to Budget

Debt Services RealizationsFiscal Year 2013 (Chart)


51/76

Ministry of Finance Republic of IndonesiaKementerian Keuangan Republik IndonesiaKementerian Keuangan Republik IndonesiaMinistry of Finance Republic of Indonesia

Notes :- Provisional, realization as of March 28, 2013

58,655

127,809

15,306

97,937

8,680

29,630

2,208

24,140

15%

23%

14%

25%

0%

5%

10%

15%

20%

25%

30%

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

A. LOAN B. SECURITIES A. LOAN B. SECURITIES

PRINCIPAL INTEREST

in

BillionIDR

Budget Realization *) % to Budget (RHS)

Interest Payment to Debt Ratio


52/76


Notes :- LKPP - Audited*) provisional, based on Budget 2013 assumption.


8.7%

7.4%7.6%

6.7%

6.2% 5.5%

1.4%1.2%

0%

2%

4%

6%

8%

10%

12%

2008 2009 2010 2011 2012 2013*

to Revenues to Expenditures to Total Debt to GDP

2008 2009 2010 2011 2012 2013*

to Revenues 9.0% 11.0% 8.9% 7.7% 8.7% 7.4%

to Expenditures 9.0% 10.0% 8.5% 7.2% 7.6% 6.7%

to Total Debt 5.8% 5.8% 5.4% 5.3% 6.2% 5.5%to GDP 1.8% 1.7% 1.4% 1.3% 1.4% 1.2%

Interest Payment Realization


53/76


Notes :-LKPP - Audited

*) Provisional-**) Budget 2013

32% 32% 30%15%

28% 29%

68% 68% 70%85%

72% 71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011 2012* 2013**

Domestic Debt Interest Payment External Debt Interest Payment

[in trillion IDR]

Nml % Nml % Nml % Nml % Nml % Nml %

88.43 100.00 93.78 100.00 88.38 100.00 93.20 100.00 117.79 100.00 113.24 100.00

a. Domestic Debt Interest Payment 59.90 67.74 63.76 67.98 61.4 69.47 79.60 85.41 84.75 71.95 80.70 71.27

b. External Debt Interest Payment 28.53 32.26 30.03 32.02 27.0 30.53 13.60 14.59 33.04 28.05 32.54 28.73

Debt Interest Payment

2008 2009 2010 2011 2012* 2013**

Terms and Conditions of Loan from Multilateral


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Loan Maturity 24.5 years 15-18 years 14-20 years up to 32 years

Grace Period 9 years 3 years 3-5 years up to 8 years

Repayment Period 15.5 years 12 years 9-16 years 5-27 years

Commitment Charge - - - 0.15%

Front End Fee 0.25% - - -

Service Charge - - - -

Interest Rate/ LIBOR + 0,40%Mark-up ***) *)

LIBOR + 0.48 % (Varia ble

Spread)

ALM 13 years = Nil **)

13 years< ALM 16

years = 0.10 % p.a

**)

16< ALM < 19 years =

0.20% p.a

**)

Description

Multilateral

IBRD-WB IFAD IDB ADB-OCR

LIBOR + 1.0% (Fixed Spread)

IFAD Reference Rate

(Semester I 2012= 1.39%)

LIBOR (swap) + 1.35%

Maturity Premium

*) for negotiations held on and / or after July 1, 2011

**) for negotiations held on and / or after April1, 2012

***) Mark-up = margin (IDB Loan)

ALM = Average Loan Maturity

Terms and Conditions of Loan from Bilateral (Japan)


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Standard Option1 Option2 Standard Option1 Option2 Option3 Standard Option

Loan Maturity 25 years 20 years 15 years 40 years 30 years 20 years 15 years 40 years 30 years

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

Repayment Period 18 years 14 years 10 years 30 years 20 years 14 years 10 years 30 years 20 years

Commitment Charge

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

Service Charge - - - - - - - - -

Interest Rate

(for non consultant services

Interest Rate

(for consultant services) 0,01%

Maturity Premium

0,1%

1,40% 0,95% 0,80% 0,65% 0,55% 0,50% 0,40% 0,20% 0,10%

Description

Bilateral

Jepang/ Japan (JICA)

General terms Prefential terms STEP

Domestic Government Debt Securities Yield Curve


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Declining cost of fund of Domestic Government Securities reflects increasing market confidence as aresponse of prudent fiscal policy and debt management.


[%]


4

6

8

10

12

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

Des '12 Des '11 Des '10 Des '09 28 Mar '13

Teno r 28 Mar '13 Des '12 Des '11 Des '10 Des '09

1Y 4,24 3,96 4,35 5,36 6,72

2Y 4,44 4,32 4,92 5,82 7,61

3Y 4,65 4,52 5,22 6,27 8,23

4Y 4,84 4,63 5,24 6,34 8,75

5Y 5,05 4,65 5,35 6,78 8,80

6Y 5,13 4,88 5,45 6,96 9,06

7Y 5,24 4,98 5,83 7,16 9,24

10Y 5,55 5,15 5,96 7,57 10,04

15Y 6,28 5,87 6,56 8,78 10,64

20Y 6,50 6,24 7,02 9,24 10,72

30Y 6,51 6,34 7,26 9,68 10,97

Indonesian Global Bond Yield Curve

[ ]


57/76

Ministry of Finance Republic of Indonesia42Kementerian Keuangan Republik Indonesia

[%]


0

2

4

6

8

10

12

1 2 3 4 5 6 7 8 9 10 15 16 17 18 19 20 25 26 27 28 29 30

Dec-08

Dec-09

Dec-11

Dec-12

28-Mar-13

Dec-08 Dec-09 Dec-11 Dec-12 28-Mar-13

1 Y 1,416 0,979

2 Y 2,707 1,421 1,581

3 Y 2,991 1,647 1,979

4 Y 3,079 1,965 2,327

5 Y 8,642 4,188 3,374 2,141 2,905

6 Y 9,057 4,387 3,515 2,448 2,994

7 Y 9,925 4,886 3,899 2,666 3,132

8 Y 5,107 3,955 3,439

9 Y 9,385 5,255 2,826

10Y 5,346 3,97 2,902

20 Y 4,268 4,846

25 Y 9,662 6,731 5,044 4,297 4,942

30 Y 9,321 6,806 5,201 4,235 4,806


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Chapter 6

Performance of Secondary Market

for Government Securities(Trading Volume, Government Securitiess

Ownership Structure)


Average Daily Trading of Domestic Government Securities


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0

100

200

300

400

500

600

700

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

14.0

J FMAMJ JASONDJ FMAMJ JASONDJ FMAMJ JASONDJFMAMJ JASONDJFMAMJ JASONDJFMAMJ JASONDJFM

2007 2008 2009 2010 2011 2012 2013

[Frequency][in IDR Trillion]

Average Daily Volume per Month Average Daily Volume per Year Frequency - RHS


Positive trend on average daily trading activityshows increasing market liquidity


Government Debt Securities Ownership


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Note:Non-Bank including Government institution

More diversified investor base which demonstrated byincreasing ownership from non-bank, foreign and retailinvestor.

Increasing offshore ownership indicates better marketconfidence.


-

5,00%

10,00%

15,00%

20,00%

25,00%

30,00%

35,00%

40,00%

45,00%

50,00%

0

100

200

300

400

500

600

700

800

900

Agus

t'04

Ma

r'05

Ok

t'05

Me

i'06

Dec'06

Ju

l'07

Feb

'08

Sep'08

Ap

r'09

Nop'09

Jun'10

Jan'11

Agus

t'11

Ma

r'12

Octobe

r-12

[IDR trillion]

BANK NON-BANK % Foreign to Total - RHS

Domestic Debt Government Securities Ownership


61/76

45Kementerian Keuangan Republik IndonesiaMinistry of Finance Republic of Indonesia

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.

Dec'08 Dec'09 Dec'10 Dec'11 Dec'12 Jan'13 Feb'13 Mar'13

BANK 258.75 254.36 217.27 265.03 299.66 307.46 309.93 315.89

State-owned Bank Recap 144.72 144.19 131.72 148.64 147.52 152.64 150.88

Private Bank Recap 61.67 59.98 54.93 67.33 81.58 81.66 78.16Non-Recap Bank 45.17 42.40 26.26 42.84 62.07 64.30 71.36

BPD Recap 6.50 6.02 1.41 4.32 3.67 4.14 4.22

Shariate Bank 0.69 1.77 2.95 1.90 4.83 4.72 5.31 5.17

Government Institution 23.01 22.50 17.42 7.84 3.07 1.90 4.60 4.86

NON-BANK 243.93 304.89 406.53 450.75 517.53 524.05 541.86 540.76

Mutual Fund 33.11 45.22 51.16 47.22 43.19 43.78 43.04 41.91

Insurance 55.83 72.58 79.30 93.09 83.42 85.72 117.44 120.78

Foreign 87.61 108.00 195.76 222.86 270.52 273.20 281.63 280.75

Including: Central Bank of

Foreign Country50.87 51.04

Pension Fund 32.98 37.50 36.75 34.39 56.46 57.31 27.55 27.61

Securities 0.53 0.46 0.13 0.14 0.30 0.63 1.18 1.04

Individu 25.77 30.29 27.56

Others 33.87 41.12 43.43 53.05 63.64 37.65 40.72 41.12

TOTAL 525.69 581.75 641.21 723.61 820.27 833.42 856.39 861.52

Domestic Debt Government Securities Ownership (%)


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46Kementerian Keuangan Republik IndonesiaMinistry of Finance Republic of Indonesia

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.

Dec'08 Dec'09 Dec'10 Dec'11 Dec'12 Jan'13 Feb'13 Mar'13

BANK 49.22% 43.72% 33.88% 36.63% 36.53% 36.89% 36.19% 36.67%

State-owned Bank Recap 27.53% 24.79% 20.54% 20.54% 17.98% 18.32% 17.62%

Private Bank recap 11.73% 10.31% 8.57% 9.30% 9.95% 9.80% 9.13%Non-recap Bank 8.59% 7.29% 4.10% 5.92% 7.57% 7.72% 8.33%

BPD recap 1.24% 1.03% 0.22% 0.60% 0.45% 0.50% 0.49%

Shariate Bank 0.13% 0.30% 0.46% 0.26% 0.59% 0.57% 0.62% 0.60%

Government Institution 4.38% 3.87% 2.72% 1.08% 0.37% 0.23% 0.54% 0.56%

NON-BANK 46.40% 52.41% 63.40% 62.29% 63.09% 62.88% 63.27% 62.77%

Mutual Fund 6.30% 7.77% 7.98% 6.53% 5.27% 5.25% 5.03% 4.87%

Insurance 10.62% 12.48% 12.37% 12.86% 10.17% 10.29% 13.71% 14.02%Foreign 16.66% 18.56% 30.53% 30.80% 32.98% 32.78% 32.89% 32.59%

Including: Central Bank of

Foreign Country18.06% 18.18%

Pension Fund 6.27% 6.45% 5.73% 4.75% 6.88% 6.88% 3.22% 3.20%

Securities 0.10% 0.08% 0.02% 0.02% 0.04% 0.08% 0.14% 0.12%

Individu 3.09% 3.54% 3.20%

Others 6.44% 7.07% 6.77% 7.33% 7.76% 4.52% 4.76% 4.77%

TOTAL 100% 100% 100% 100% 100% 100% 100% 100%

Foreign Ownership of Domestic Government Securitiesby Tenor


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4,46%

10,18% 11,87%7,84%

10,22%8,10% 6,63%

4,74%

4,64%8,19%

2,83%3,11%

2,53% 2,58%

19,78%18,14%

16,78%

16,50%16,66%

16,62% 16,69%

21,72%

21,03%

24,93%

27,83% 25,11% 27,30% 27,67%

49,30% 46,00% 38,23% 45,01% 44,91% 45,46% 46,42%

19%

30,53% 30,80%32,98% 32,78% 32,89% 32,59%

0%

20%

40%

0,00%

20,00%

40,00%

60,00%

80,00%

100,00%

Dec-09 Dec-10 Dec-11 Dec-12 Jan-13 Feb-13 28 Maret 2013

0-1 >1-2 >2-5 >5-10 >10 % Foreign Ownership to Total (RHS)

Mar-13

Spread over UST- Jan 18

600


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0

200

400

600

26-Jan-12 26-Mar-12 26-May-12 26-Jul-12 26-Sep-12 26-Nov-12 26-Jan-13 26-Mar-13

INDO 18 TURK 18

PHIL 19 BRAZ 19

MEX 19

DATE INDO 18 UST 18 TURK 18 PHIL 19 BRAZ 19 MEX 19

Sep-12 2.27 0.69 2.95 2.19 1.91 1.83

Dec-12 2.16 0.73 2.43 2.00 1.75 1.39Jan-13 2.42 0.87 2.64 2.22 2.05 1.12

Feb-13 2.59 0.73 2.55 2.19 2.15 1.10

22-Mar-13 2.64 0.76 2.75 2.23 2.23 1.47

25-Mar-13 2.68 0.75 2.76 2.23 2.23 1.44

26-Mar-13 2.71 0.74 2.77 2.24 2.23 1.35

27-Mar-13 2.74 0.70 2.80 2.22 2.16 1.35

Spread over UST- Feb 22


65/76


-

200

400

600

26-Mar-12 26-May-12 26-Jul-12 26-Sep-12 26-Nov-12 26-Jan-13 26-Mar-13

PHIL 21 BRAZ 21

INDO 22 MEX 22

TURK 22

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

Sep-12 2.43 2.25 1.53 3.05 2.68 3.77

Dec-12 2.26 2.08 1.61 2.90 2.58 3.21Jan-13 2.50 2.45 1.83 3.13 2.61 3.53

Feb-13 2.39 2.51 1.69 3.28 2.78 3.59

22-Mar-13 2.49 2.63 1.72 3.47 2.82 3.73

25-Mar-13 2.49 2.59 1.72 3.51 2.81 3.75

26-Mar-13 2.49 2.60 1.71 3.55 2.90 3.76

27-Mar-13 2.48 2.60 1.64 3.54 3.01 3.80

Spread over UST-Feb 42


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0

200

400

600

26-Mar-12 26-May-12 26-Jul-12 26-Sep-12 26-Nov-12 26-Jan-13 26-Mar-13

MEX 40 BRAZ 41

TURK 41 COLM 41

INDO 42

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

Sep-12 4.01 3.96 4.91 4.00 4.40 2.80

Dec-12 3.95 3.80 4.44 3.91 4.23 2.91Jan-13 4.38 4.30 4.77 4.34 4.57 3.14

Feb-13 4.43 4.37 4.92 4.38 4.71 3.06

22-Mar-13 4.54 4.63 5.11 4.57 4.75 3.13

25-Mar-13 4.54 4.59 5.12 4.55 4.77 3.13

26-Mar-13 4.54 4.59 5.12 4.52 4.79 3.13

27-Mar-13 4.48 4.55 5.14 4.47 4.80 3.07


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Chapter 7

Rating, Government Guarantee, SupremeAudit Agency Opinion (BPK), Conclusion


Credit Rating of Indonesia


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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, Moodys, S&P)

Improvement rating one notch down the potential performance yield of new foreigncurrency 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


Indonesia Credit Rating Performance (1)


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On October 18, 2012, R&Iupgraded IndonesiasSovereign Credit Rating fromBB+ to BBB-

on March 30, 2012, OECDupgraded CRC of Indonesiafrom classification 4 to 3

on January 18, 2012, Moody'supgraded Indonesia's CreditRating from Ba1 to Baa3

Indonesia Rating Performance 1999 - 2012


S&P Fitch Moody's R&I JCRA CRC1999 CCC+ B- B3 B- - 6

2000 B- B- B3 B- - 6

2001 CCC B- B3 B- - 6

2002 CCC+ B B3 B- B 6

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

Tahun/

year

Rating


Indonesia Credit Rating Performance (2)


70/76


-

1

2

3

4

5

6

7

8

9

10

11

12

13

14

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Moody's (RHS) S&P's Fitch's

CCC-

CCC+

B

BB-

BB+

BBB

SD/DD

R/C

CC

CCC

B-

B+

BB

BBB-

BBB+

Ca

Caa2

B3

B1

Ba2

Baa3

Baa1

C

Caa3

Caa1

B2

Ba3

Ba1

Baa2

2000 2004 2005 20062001 2002 2003 2007 2008 2009 2010 2011 20121998 19991997

Investment

grade

Moodyss upgrade to Ba1/stable

outlook as of 17 Jan2011

S&Ps upgrade to BB+/ positif

outlook as of8 Apr 2011

Fitchs reconfirm at BBB-/stable

outlook , as of Nov 21, 2012

BankRecapitalization

s

EconomicCrisis in

1998

Reprofiling VR & HB,assets bond swap, long

term issuance

Regular issuancethrough auction,buyback program

Regular issuancethrough auction,buyback program, & Debt Switching

Regular issuancethrough auction,buyback program

, debt switching, &diversification

instrument

In

vestment

grade

NonInvestmen

tgrade

S&Ps downgradeto SelectiveDefault, but

revised it after 2days

NonIn

vestmentgrade

Moodyss upgrade to Baa3/stable

outlook as of 18 Jan 2012

Fitchs upgrade to BBB-/stable

outlook as of 15 Dec 2011

S&Ps reconfirm at BB+/positif

outlook as of23 Apri2012

Indonesia Sovereign Credit Rating Performance (1)

O M h 30th 2012 OECD d d I d i ' C t Ri k Cl ifi ti (CRC) f


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Kementerian Keuangan Republik IndonesiaKementerian Keuangan Republik IndonesiaKementerian Keuangan Republik Indonesia

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 financialmetrics will remain in line with Baa peers, the demonstrated resilience of Indonesia's economicgrowth to large external shocks, the presence of policy buffers and tools that address financialvulnerabilities 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 publicdebt 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 balancesheet and external liquidity, against a backdrop of a resilient economic performance and cautiousfiscal management


Indonesia Sovereign Credit Rating Performance (2)

On October 18 2012 R&I upgrades Sovereign Credit Rating of the Republic of


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On October 18, 2012, R&I upgrades Sovereign Credit Rating of the Republic ofIndonesia to BBB- /stable outlook. R & I stated key factors supporting thedecision 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) Governments debt burden is kept lowand (4 ) financial system has become more stable.

On July 13th 2010 JCRA upgraded Indonesias 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 stabilityalong with the progress in democratization and decentralization, (ii) sustainableeconomic growth outlook underpinned by solid domestic demand, (iii) alleviatedpublic debt burden as a result of prudent fiscal management, (iv) reinforced resilienceto external shocks stemming from the foreign reserves accumulation and an improvedcapacity for external debt management and (v) efforts made by the second Yudhoyonoadministration to outline the framework to deal with structural issues such asinfrastructure development.


Government Guarantee Outstanding and Budget Allocation


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Notes:- As of February 28, 2013- Rate assumptions : Rp. 9670,- per USD


2008 2009 2010 2011 2012 2013

1 Fast track Program Phase 1 (FTP 1) 34 74,386.80 283.0 1,000.0 1,000.0 889.0 623.3 611.2

2Program Percepatan Penye diaan Air Minum

(Clean Water Avaliability Program)3 205.16 - - 50.0 15.0 10.0 35.0

3 Penjaminan Proyek Ke rjasama Peme rintah danSwasta (Public Private Partnership Project)

1 30,944.00 - - - - - 59.8

4 Fast track Program Phase 2 (FTP 2) 4 20,656.13 - - - - -

126,192.09 283.0 1,000.0 1,050.0 904.0 633.3 706.0TOTAL

No Program PenjaminanJumlah Surat

Jaminan

Nilai Jaminan

(Miliar Rupiah)

Alokasi APBN (Miliar Rupiah)

BPK Opinion on Government Financial Report

I d i S A di A (BPK) h d d


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Indonesian Supreme Audit Agency (BPK) has awardedUnqualified Opinion to the Financial Report of all accounts

related to debt management and administration (BA-999.01)

Debt managements accountability continues to improve

Internal control system

Compliance to the existing regulation


Conclusion

Fiscal deficit requires financing Debt has long been recognized as the best policy


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Fiscal deficit requires financing. Debt has long been recognized as the best policytool 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 stillin a healthy level

Ultimate goal of debt management is to acquire fund with low cost & risk, withlong 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 Governments Financial Report of 2008, 2009, 2010, and 2011 has beenawarded Unqualified Opinion (WTP) by the Supreme Audit Agency (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 Indonesiarating from BB- to BB in the midst of global financial crisis and rating downgrading ofother economies. This proves at least two things: positive expectation of the economyin the short-to-medium run and the credibility of fiscal policy. By JCRA and Fitch,Indonesia has been placed into Investment Grade category



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Documents

Indonesia's Central Government Debt Profile April 2013 (English)