EX-99.E

Exhibit 99.E

RECENT DEVELOPMENTS

The information contained in this section supplements the information about the Republic corresponding to the headings below that is contained in Exhibit 99.D to the Republic’s annual report on Form 18-K for the fiscal year ended December 31, 2021. To the extent the information in this section differs from the information contained in that annual report, you should rely on the information in this section. Capitalized terms not defined in this section have the meanings ascribed to them in the annual report.

REPUBLIC OF INDONESIA

Recent Developments

Recent Public Health Developments

The Government continues its vaccination campaign against Covid-19, with approximately 175 million people having received at least two doses and over 68 million people having received three or more doses of the vaccine. Throughout the year of 2022, the Government substantially relaxed its Covid-19-related restrictions, reopening Indonesia to international tourists and lifting all quarantine requirements for fully vaccinated international visitors.

Just Energy Transition Partnership

At the G20 meeting in Bali in November 2022, Indonesia and a number of developed economies including Canada, Denmark, the European Union, France, Germany, Italy, Japan, Norway, the United Kingdom and the United States issued a joint statement to launch a Just Energy Transition Partnership, pursuant to which the developed economies committed to provide, mobilize and facilitate funding in the form of grants, low interest loans, and investment, with U.S.$10 billion expected to come from public sectors and U.S.$10 billion from private investment, to support Indonesia’s transition to clean energy.

New Omnibus Bill on Financial Sectors

On December 16, 2022, the President and House of Representatives (Dewan Perwakilan Rakyat Republik Indonesia) jointly approved an omnibus bill to amend a number of existing laws (and their implementing regulations) on various financial sectors, such as banking, capital markets, money markets, foreign exchange markets, insurances, financing companies, bullion markets, pension funds, financial stability and export credits. The bill—which is currently pending the President’s signature to come into force as law—among other things, focuses on: institutional strengthening of authorities within the financial sectors; strengthening financial industry governance and improving public’s trust in financial industry; promoting long-term fund accumulation in the financial sector for welfare and supporting sustainable development funding; strengthening of state protection for financial products customers; and strengthening of financial sectors literacy, inclusion and innovation to promote further participation of the public in the national financial sector.

Bank Indonesia Policy Rates

Bank Indonesia continues to work with the Government to coordinate the implementation of national policy to accelerate economic recovery while maintaining stability. From August to December 2022, in an effort to lower the expected inflation and as a front-loaded, pre-emptive and forward-looking measure to maintain core inflation within the range of 3.0±1%, Bank Indonesia raised the BI 7-Day Reverse Repo Rate (“BI7DRR”) from 3.50% to 5.50%, the deposit facility rate from 2.75% to 4.75% and the lending facility rate from 4.25% to 6.25%. Before these increases, Bank Indonesia had maintained the BI7DRR at 3.50%, the deposit facility rate at 2.75% and the lending facility rate at 4.25% since February 2021. Monetary policy in 2023 will continue to focus on maintaining stability while macroprudential policy, payment system digitalization, money market deepening, and inclusive and green economic-financial programs are directed towards growth.

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Economy and Gross Domestic Product

Principal Sectors of the Economy

Indonesia’s principal economic sectors are manufacturing industry (including coal, oil and gas); agriculture, forestry and fishery; wholesale and retail trade, repair of motor vehicles and motorcycles; construction; and mining and quarrying.

The tables below show the composition of Indonesia’s GDP by sector at current prices and constant prices, respectively, for the periods indicated.

Gross Domestic Product by Industry

(at current prices)


	Year Ended December 31,				Nine Months Ended September 30,
	2021^P		%		2021^P		%		2022^P		%

	(in billions of Rupiah and percentage of GDP)
Manufacturing Industry
Coal Industry and Oil and Gas Refining		320,009		1.9		237,011		1.9		264,612		1.8
Non-Coal, Oil and Gas Manufacturing Industries		2,946,895		17.4		2,184,484		17.5		2,389,910		16.5

Total Manufacturing Industry		3,266,904		19.3		2,421,495		19.4		2,654,522		18.3
Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles		2,200,529		13.0		1,628,651		13.1		1,864,655		12.8
Agriculture, Forestry, and Fishery
Agriculture, Livestock, Hunting & Agriculture Services		1,672,252		9.9		1,314,809		10.5		1,405,844		9.7
Forestry and Logging		111,991		0.7		83,337		0.7		87,562		0.6
Fishery		469,594		2.8		343,490		2.8		369,394		2.5

Total Agriculture, Forestry, and Fishery		2,253,837		13.3		1,741,636		14.0		1,862,799		12.8
Mining and Quarrying
Oil, Gas and Geothermal Mining		461,703		2.7		332,366		2.7		438,396		3.0
Coal and Lignite Mining		603,138		3.6		385,775		3.1		984,679		6.8
Metal Ore		204,590		1.2		149,798		1.2		183,535		1.3
Other Mining and Quarrying		254,219		1.5		186,566		1.5		194,726		1.3

Total Mining and Quarrying		1,523,650		9.0		1,054,505		8.5		1,801,336		12.4
Construction		1,771,727		10.4		1,300,466		10.4		1,400,799		9.6
Government Administration, Defense Compulsory Social Security		584,361		3.4		424,563		3.4		440,046		3.0
Information and Communication		748,755		4.4		556,045		4.5		601,644		4.1
Transportation and Warehousing		719,633		4.2		514,467		4.1		699,282		4.8
Financial and Insurance Service		736,189		4.3		550,705		4.4		602,307		4.1
Education Service		556,318		3.3		402,723		3.2		409,990		2.8
Other*		1,922,790		11.3		1,418,238		11.4		1,550,883		10.7

Gross Value Added at Basic Prices		16,284,691		96.0		12,013,495		96.3		13,888,265		95.6
Taxes less Subsidies on Products		686,098		4.0		459,249		3.7		636,950		4.4

Total GDP		16,970,789		100.0		12,472,744		100.0		14,525,215		100.0

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Source: BPS

^P	Preliminary.

*	Includes the Procurement of Electricity and Gas; Procurement of Water, Management of Trash, Waste and Recycle; Accommodation and Food Beverages Supply; Real Estate; Corporate Services; Health Service and Social Activity; and Other Services sectors.

Gross Domestic Product by Industry

(at constant prices)


	Year Ended December 31,				Nine Months Ended September 30,
	2021^P		%		2021^P		%		2022^P		%

	(in billions of Rupiah and percentage of GDP)
Manufacturing Industry
Coal Industry and Oil and Gas Refining		203,767		1.8		151,989		1.8		155,081		1.8
Non-Coal, Oil and Gas Manufacturing Industries		2,081,055		18.7		1,549,951		18.7		1,625,764		18.6

Total Manufacturing Industry		2,284,822		20.5		1,701,940		20.6		1,780,845		20.4
Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles		1,450,226		13.0		1,083,229		13.1		1,139,134		13.1
Agriculture, Forestry, and Fishery
Agriculture, Livestock, Hunting & Agriculture Services		1,072,507		9.6		850,093		10.3		860,487		9.9
Forestry and Logging		63,236		0.6		47,401		0.6		46,863		0.5
Fishery		267,967		2.4		196,907		2.4		202,610		2.3

Total Agriculture, Forestry, and Fishery		1,403,710		12.6		1,094,401		13.2		1,109,960		12.7
Mining and Quarrying
Oil, Gas and Geothermal Mining		260,546		2.3		195,375		2.4		185,390		2.1
Coal and Lignite Mining		261,710		2.4		196,223		2.4		207,767		2.4
Metal Ore		130,000		1.2		95,670		1.2		113,510		1.3
Other Mining and Quarrying		169,844		1.5		124,704		1.5		127,781		1.5

Total Mining and Quarrying		822,100		7.4		611,972		7.4		634,448		7.3
Construction		1,102,518		9.9		814,376		9.8		831,949		9.5
Government Administration, Defense Compulsory Social Security		364,233		3.3		265,861		3.2		273,129		3.1
Information and Communication		696,460		6.3		517,752		6.3		555,901		6.4
Transportation and Warehousing		406,188		3.7		294,395		3.6		356,127		4.1
Financial and Insurance Service		464,639		4.2		350,342		4.2		355,021		4.1
Education Service		350,655		3.2		255,054		3.1		256,473		2.9
Other*		1,323,802		11.9		978,305		11.8		1,045,115		12.0

Gross Value Added at Basic Prices		10,669,353		96.0		7,967,625		96.3		8,338,100		95.6
Taxes less Subsidies on Products		449,516		4.0		305,385		3.7		381,677		4.4

Total GDP		11,118,869		100.0		8,273,010		100.0		8,719,777		100.0

Source: BPS

^P	Preliminary.

*	Includes the Procurement of Electricity and Gas; Procurement of Water, Management of Trash, Waste and Recycle; Accommodation and Food Beverages Supply; Real Estate; Corporate Services; Health Service and Social Activity; and Other Services sectors.

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Manufacturing Industry

During the nine months ended September 30, 2022, the manufacturing industry grew by 4.6% compared to the same period in 2021. This was due to a growth of 4.9% in the non-coal, oil and gas manufacturing industries and a growth of 2.0% in the coal, oil and gas refining industry, each as compared to the same period in 2021. The 4.9% growth in the non-coal, oil and gas manufacturing industries was primarily driven by a growth of 14.7% in the basic metals industry due to increased production of iron and steel as well as increasing foreign demand of basic metals, a growth of 10.6% in transportation equipment industry as a result of increased car production.

Wholesale and retail trade; repair of motor vehicles and motorcycles

During the nine months ended September 30, 2022, the wholesale and retail trade, repair of motor vehicles and motorcycles sector grew by 5.2% compared to the same period in 2021. This was driven by a growth of 5.5% in the trade of cars, motorbikes and repair subsector and a growth of 5.1% in the big trade and retail (not cars and motorcycles) subsector.

Agriculture, forestry and fishery

During the nine months ended September 30, 2022, the agriculture, forestry and fishery sector grew by 1.4% compared to the same period in 2021. This was mainly driven by a growth of 2.9% in fishery subsector driven by increased production in captured and farmed fisheries, and a growth of 1.2% in agriculture, livestock, hunting, & agriculture services subsector due to the increase in palm oil production and tea commodity demand. The forestry and logging subsector declined by 1.1% as compared to the same period in 2021.

Mining and Quarrying

During the nine months ended September 30, 2022, the mining and quarrying sector grew by 3.7% compared to the same period in 2021. This was mainly driven by a growth of 18.6% in metal ore mining subsector driven by increased production of copper and gold in the mineral district of Grasberg, Papua, and increased demand from abroad, especially for gold and copper commodities. The coal and lignite mining subsector grew by 5.9% and the other mining and quarrying subsector saw a growth of 2.5%. On the contrary, the oil, gas and geothermal mining subsector declined by 5.1% as compared to the same period in 2021.

Oil and Natural Gas

The following table sets forth the average price of Indonesian crude oil, measured by the Indonesian Crude Price (“ICP”), for the periods indicated.


	As of December 31,		As of November 30,
	2021		2022

	(in U.S. dollars per barrel)
ICP		68.5		87.5

Sources: Directorate General of Oil and Gas, Ministry of Energy and Mineral Resources

Construction

During the nine months ended September 30, 2022, the construction sector grew by 2.2% compared to the same period in 2021.

Transportation and Warehousing

During the nine months ended September 30, 2022, the transportation and warehousing sector grew by 21.0% compared to the same period in 2021. This was primarily due to a growth of 48.0% in warehousing and

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transportation support services, and post and courier, a growth of 78.8% in air freight and a growth of 8.5% in land transport.

Financial and Insurance Service

During the nine months ended September 30, 2022, the financial and insurance service sector grew by 1.3% compared to the same period in 2021. This was primarily due to growths in financial intermediary services and other financial services.

Information and Communication

During the nine months ended September 30, 2022, the information and communication sector grew by 7.4% compared to the same period in 2021.

Gross Domestic Product by Expenditure

The following table shows the distribution of GDP in the Indonesian economy by expenditure at current prices and constant prices, respectively, for the periods indicated.

Gross Domestic Product by Expenditure

(at current prices)


	Year Ended December 31,				Nine Months Ended September 30,
	2021^P		%		2021^P		%		2022^P		%

	(in billions of Rupiah and percentage of GDP)
GDP		16,970,789		100.0		12,472,744		100.0		14,525,215		100.0
Add: Imports of goods and services		3,201,023		18.9		2,277,213		18.3		3,040,769		20.9

Total supply of goods and services		20,171,812		118.9		14,749,957		118.3		17,565,984		120.9
Less: Exports of goods and services		3,659,040		21.6		2,593,174		20.8		3,599,749		24.8

Total domestic expenditure		16,512,772		97.3		12,156,783		97.5		13,966,235		96.2

Allocation of total domestic expenditure:
Household consumption expenditure		9,236,010		54.4		6,856,275		55.0		7,518,487		51.8
NPISHs consumption expenditure		207,767		1.2		154,493		1.2		169,427		1.2
Government consumption expenditure		1,551,707		9.1		1,020,164		8.2		978,709		6.7

Total consumption		10,995,483		64.8		8,030,933		64.4		8,666,623		59.7
Gross domestic fixed capital formation		5,227,854		30.8		3,832,933		30.7		4,170,982		28.7
Change in inventories (residual)⁽¹⁾		289,435		1.7		292,917		2.3		1,128,630		7.8

Total domestic expenditure		16,512,772		97.3		12,156,783		97.5		13,966,235		96.2

Source: BPS

^P	Preliminary.

⁽¹⁾	Includes statistical discrepancies.

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Gross Domestic Product by Expenditure

(at constant 2010 prices)⁽¹⁾


	Year Ended December 31,				Nine Months Ended September 30,
	2021^P		%		2021^P		%		2022^P		%

	(in billions of Rupiah and percentage of GDP)
GDP		11,118,869		100.0		8,273,010		100.0		8,719,777		100.0
Add: Imports of goods and services		2,101,352		18.9		1,514,406		18.3		1,772,902		20.3

Total supply of goods and services		13,220,220		118.9		9,787,415		118.3		10,492,679		120.3
Less: Exports of goods and services		2,592,682		23.3		1,888,447		22.8		2,258,033		25.9

Total domestic expenditure		10,627,538		95.6		7,898,969		95.5		8,234,646		94.4

Allocation of total domestic expenditure:
Household consumption expenditure		5,896,697		53.0		4,386,050		53.0		4,608,941		52.9
NPISHs consumption expenditure		132,317		1.2		98,570		1.2		104,147		1.2
Government consumption expenditure		909,173		8.2		603,880		7.3		575,663		6.6

Total consumption		6,938,187		62.4		5,088,500		61.5		5,288,751		60.7
Gross domestic fixed capital formation		3,549,219		31.9		2,615,123		31.6		2,721,158		31.2
Change in inventories (residual)⁽²⁾		140,132		1.3		195,346		2.4		224,737		2.6

Total domestic expenditure		10,627,538		95.6		7,898,969		95.5		8,234,646		94.4

Source: BPS

^P	Preliminary.

⁽¹⁾	Calculated with calendar year 2010 as the Base Year.

⁽²⁾	Includes statistical discrepancies.

Inflation

The following table shows the Consumer Price Index (“CPI”), as of the end of the periods indicated and the percentage changes against the previous period.

Changes in Consumer Price Index


	As of December 31,			As of November 30,
	2021			2021			2022
CPI⁽¹⁾		107.7			107.1			112.9
Annual percentage year-on-year		1.7	%		1.8	%		5.4	%

Source: BPS

⁽¹⁾

Calculated on the basis of 2018 CPI = 100. From January 2020, BPS calculated CPI based on a consumption pattern obtained from a cost of living survey conducted in 2018 in 90 cities in Indonesia. Prior to January 2020, CPI was based on a consumption pattern obtained from a cost of living survey conducted in 2012 in 82 provincial capital cities in Indonesia.

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The following table shows percentage changes year-on-year in the CPI for certain commodities for the periods indicated.

Inflation by Commodity⁽¹⁾⁽²⁾


	As of December 31,			As of November 30,
	2021			2021		2022
Food, drinks, and tobacco		3.1			3.0		5.9
Clothing and Footwear		1.5			1.3		1.5
Housing, water, electricity, and household fuel		0.8			0.7		3.2
Household equipment, tools, and routine maintenance		2.7			2.5		5.0
Health		1.7			1.7		2.9
Transportation		1.6			1.4		15.5
Information, communication, and financial services		(0.1	)		0.0		(0.4	)
Recreation, sports, and culture		1.1			1.0		2.9
Education		1.6			1.6		2.8
Food and beverage providers/restaurant		2.7			2.7		4.6
Personal care and other services		1.7			1.2		5.5

Source: BPS

⁽¹⁾	Annual percentage year-on-year.

⁽²⁾

From January 2020, BPS calculated CPI based on a consumption pattern obtained from a cost of living survey conducted in 2018 in 90 cities in Indonesia. Prior to January 2020, CPI was based on a consumption pattern obtained from a cost of living survey conducted in 2012 in 82 provincial capital cities in Indonesia.

As of November 2022, annual inflation was 5.4%, which was lower than the 5.7% annual inflation in October 2022. This was due to lower inflation in some of the commodities sectors from October 2022 to November 2022. The three sectors which experienced the highest inflation as of November 2022 were transportation; food, drinks and tobacco; and personal care and other services, for which the annual inflation was 15.5%, 5.9% and 5.5%, respectively, and the month-to-month inflation compared to October 2022 was 0.0%, 0.0% and 0.4%, respectively.

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Labor and Employment

Labor

The following table sets forth the proportion of the employed labor force in each sector of the economy as of the periods indicated.


	As of February				As of August
Sector	2022⁽¹⁾				2022⁽¹⁾
	(in millions)		%		(in millions)		%
Agriculture, forestry and fishing		40.6		30.0		38.7		28.6
Mining and quarrying		1.6		1.2		1.5		1.1
Manufacturing		18.7		13.8		19.2		14.2
Electricity, gas, steam and air conditioning supply		0.3		0.2		0.3		0.2
Water supply, sewerage, waste management and remediation activities		0.5		0.4		0.5		0.4
Construction		8.2		6.0		8.5		6.3
Wholesale and retail trade, repair of motor vehicles and motorcycles		25.8		19.0		26.2		19.4
Transportation and storage		5.7		4.2		5.8		4.3
Accommodation and food service activities		9.6		7.1		9.6		7.1
Information and communication		1.1		0.8		1.0		0.7
Financial and insurance activities		1.5		1.1		1.6		1.2
Real estate activities		0.5		0.3		0.5		0.3
Professional, scientific and technical activities, Administrative and support service activities		1.9		1.4		2.2		1.7
Public administration and defence, compulsory social security		4.6		3.4		4.9		3.6
Education		6.6		4.9		6.5		4.8
Human health and social work activities		2.4		1.8		2.2		1.7
Other service activities		5.9		4.3		6.0		4.5

Total		135.6		100.0		135.3		100

Source: BPS

⁽¹⁾	Estimation using population projections weighing results.

Employed Labor Force of Indonesia by Gender

The following table sets forth Indonesia’s employed labor force by gender as of the periods indicated.

As of
February

As of
August

2022

(in millions)

%⁽¹⁾

(in millions)

%⁽¹⁾

Male

82.3

60.7

82.6

61.0

Female

53.3

39.3

52.7

39.0

Total

135.6

100.0

135.3

100.0

Source: BPS

⁽¹⁾	Percentages are calculated as percentages of the employed labor force.

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Employment and Unemployment in Indonesia

The following table sets forth Indonesia’s employment and unemployment rate each as a percentage of Indonesia’s labor force as of the periods indicated.⁽¹⁾


	As of February				As of August
	2022				2022
	(in millions)		%		(in millions)		%
Employed		135.6		94.2		135.3		94.1
Unemployed⁽²⁾		8.4		5.8		8.4		5.9

Total		144.0		100.0		143.7		100

Source: BPS

⁽¹⁾	Working age population refers to all persons in Indonesia 15 years old or older and includes certain non-workforce categories such as students and home makers.

⁽²⁾

The Government defines unemployment to include all persons 15 years old and older without work who (i) are looking for work, (ii) have established a new business, (iii) are not looking for work because they do not expect to find work, and (iv) have made arrangements to start work on a date subsequent to the unemployment measurement date.

Regional Growth

As the island with the highest population density, high consumption and an industrial base, Java has historically been the main contributor to Indonesia’s economic growth. In the third quarter of 2022, Java contributed 56.3% of the country’s GDP, Sumatera contributed 22.0%, Kalimantan contributed 9.4%, Sulawesi contributed 7.1%, Bali and Nusa Tenggara contributed 2.7%, and Maluku and Papua contributed 2.4%.

Foreign Investment

Foreign Investment in Indonesia

The following table sets out the amounts of foreign investments in Indonesia by non-residents for the periods indicated.

Foreign Investment in Indonesia


	Year Ended December 31,			Nine Months Ended September 30,
	2021^P			2021^P			2022^P

	(in millions of U.S. dollars)
Direct Investments
Equity Capital		20,566			15,919			14,085
Debt instrument		796			312			952
Total direct investments		21,362			16,231			15,037
Portfolio investments:
Equity securities		3,131			2,321			5,146
Debt securities		3,719			9,079			(7,988	)
Total portfolio investments		6,850			11,401			(2,842	)
Financial derivatives		(1,143	)		(440	)		(811	)
Other investments		(616	)		2,306			(729	)

Total foreign investment		26,453			29,498			10,655

Source: Bank Indonesia

^P	Preliminary.

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Foreign Direct Investment in Indonesia by Country of Origin⁽¹⁾


	Year Ended December 31,			Nine Months Ended September 30,
	2021^P			2021^P			2022^P

	(in millions of U.S. dollars)
North America		1,541			1,032			1,197
USA		1,481			994			1,193
Canada		38			38			3
Other North America⁽²⁾		22			(1	)		1
Central and South America		(70	)		438			50
Argentina		0			0			0
Brazil		18			(1	)		(20	)
Mexico		1			2			1
Cayman Islands		(7	)		(8	)		93
Other Central and South America		(81	)		445			(24	)
Europe		1,001			366			1,162
European Union		963			342			1,069
Belgium		(40	)		(86	)		102
Denmark		96			25			10
Finland		(15	)		(19	)		(1	)
France		1			(1	)		42
Germany		38			33			200
Greece		9			4			(10	)
Ireland		0			0			0
Italy		38			17			(10	)
Luxembourg		(407	)		(372	)		(395	)
Netherlands		(1	)		(1	)		16
Portugal		399			231			400
Spain		0			0			0
Sweden		20			20			2
United Kingdom		142			0			11
Other European Union		682			490			701
Russia		0			0			2
Turkey		0			0			1
Other Europe		4			6			2
Asia		18,664			15,334			12,720
Japan		1,960			1,739			1,198
People’s Republic of China		5,076			4,771			2,520
South Korea		771			891			1,365
India		227			220			375
Hong Kong SAR		3,118			2,391			1,511
Taiwan		109			92			824
Saudi Arabia		2			2			0
ASEAN		7,400			5,221			4,917
Brunei Darussalam		0			0			1
Cambodia		1			1			1
Lao PDR		0			0			0
Malaysia		(26	)		(136	)		384
Myanmar		0			0			(1	)
Philippines		5			5			101
Singapore		5,339			3,348			4,370

E-10


	Year Ended December 31,			Nine Months Ended September 30,
	2021^P			2021^P			2022^P

	(in millions of U.S. dollars)
Thailand		2,077			2,001			57
Vietnam		3			2			4
Other Asia		3			7			10
Australia and Oceania		119			63			316
Australia		118			62			314
New Zealand		2			3			2
Other Australia and Oceania		(2	)		(2	)		0
Africa		(24	)		(24	)		(8	)
South Africa		0			0			0
Other Africa		(23	)		(24	)		(8	)
Others		(351	)		(434	)		(22	)

Total		20,881			16,776			15,414

Source: Bank Indonesia

^P	Preliminary.

⁽¹⁾	Presents foreign direct investment in accordance with the directional principle prescribed by BPM5.

⁽²⁾	Includes Bermuda, Greenland and Saint Pierre and Miquelon.

Foreign Direct Investment

The following table sets out the amounts of foreign direct investments in Indonesia by non-residents for the periods indicated.

Foreign Direct Investment


	Year Ended December 31,			Nine Months Ended September 30,
	2021^P			2021^P			2022^P

	(in millions of U.S. dollars)
Equity capital⁽¹⁾		20,566			15,919			14,085
Debt instruments:
Inflow		42,766			31,163			33,960
Outflow		(41,971	)		(30,850	)		(33,008	)
Total debt instruments		796			312			952

Total direct investments		21,362			16,231			15,037

Memorandum⁽²⁾
Direct investment in Indonesia		20,881			16,776			15,414

Source: Bank Indonesia

^P	Preliminary.

⁽¹⁾	Includes privatization and banking restructuring.

⁽²⁾	Presents foreign direct investment in accordance with the directional principle prescribed by BPM5.

E-11

Foreign direct investment maintained a surplus totaling U.S.$15.0 billion in the first nine months of 2022, primarily in the form of equity capital, representing a decrease of 7.4% from a U.S.$16.2 billion surplus in the same period of 2021. The decrease was primarily due to decreases of investment in mining and quarrying and construction, partially offset by an increase of investment in manufacturing. With respect to country of origin, the decrease was primarily due to decreases of investment from People’s Republic of China, Hong Kong SAR and Thailand.

The manufacturing, transportation, financial intermediaries and trade sectors were the main contributors to net foreign direct investment inflows in the first nine months of 2022. With respect to country of origin, investors from Asian emerging markets (including China) were the main contributors to foreign direct investment inflows, followed by ASEAN countries.

Foreign Portfolio Investment

The following table sets out the amounts of foreign portfolio investments in Indonesia by non-residents.

Foreign Portfolio Investment


	Year Ended December 31,			Nine Months Ended September 30,
	2021^P			2021^P			2022^P

	(in millions of U.S. dollars)
Equity securities:
Inflows		59,114			41,782			62,430
(Outflows)		(55,983	)		(39,461	)		(57,284	)
Net equity securities		3,131			2,321			5,146
Debt securities (net)		3,719			9,079			(7,988	)

Total portfolio investments		6,850			11,401			(2,842	)

Source: Bank Indonesia

^P	Preliminary.

In the first nine months of 2022, foreign capital flows in the form of portfolio investments in Indonesia recorded a net outflow of U.S.$2.8 billion, compared to a net inflow of U.S.$11.4 billion in the same period last year. The increasing global financial market uncertainty triggered the rebalancing of domestic government securities (“SBN”) to other instruments, thus reducing the portion of non-resident holdings of domestic SBN, amidst increasing foreign capital inflows in the stock market.

E-12

Other Foreign Investment

The following table sets out the amounts of other investments (other than portfolio or foreign direct investments) in Indonesia by non-residents, mainly consisting of loans received and paid for the periods indicated.

Other Foreign Investment


	Year Ended December 31,			Nine Months Ended September 30,
	2021^P			2021^P			2022^P

	(in millions of U.S. dollars)
Loans
Bank sector:
Disbursements		1,409			841			3,153
Debt repayments		(4,489	)		(2,681	)		(1,828	)

Total bank sector		(3,080	)		(1,841	)		1,326
Corporate sector:
Disbursements		15,131			11,095			14,315
Debt repayments		(20,177	)		(15,260	)		(17,049	)

Total corporate sector		(5,046	)		(4,166	)		(2,734	)
Other (net)⁽¹⁾		7,510			8,313			679

Total other investments		(616	)		2,306			(729	)

Source: Bank Indonesia

^P	Preliminary.

⁽¹⁾	Consists of loans of public sector and trade credit, currency and deposits, and other liabilities of private sector and public sector.

In the first nine months of 2022, other foreign investments recorded a deficit of U.S.$0.7 billion, reversing a surplus of U.S.$2.3 billion in the same period of 2021. The deficit mainly stemmed from net repayments of corporate sectors loan.

E-13

Direct Investment Realizations

Foreign Direct Investment

The following table sets forth the amount of realized foreign direct investment by sector of the economy for the periods indicated.

Realized Foreign Direct Investment by Sector⁽¹⁾


	Year Ended December 31,		Nine Months Ended September 30,
	2021		2021		2022

	(in millions of U.S. dollars)
Primary Sector
Food Crops, Plantation & Livestock		951		760		1,360
Forestry		41		32		72
Fishery		17		13		20
Mining		3,817		2,344		3,482

Total Primary Sector		4,826		3,149		4,933

Secondary sector:
Food Industry		2,337		2,018		1,937
Textile Industry		312		244		521
Leather Goods & Footwear Industry		486		285		501
Wood Industry		68		47		206
Paper and Printing Industry		953		593		1,309
Chemical and Pharmaceutical Industry		1,657		1,301		2,709
Rubber and Plastic Industry		262		224		259
Non Metallic Mineral Industry		327		254		298
Metal, Industry not Machinery & Electronic Industry		6,974		4,954		8,465
Medical Precision & Optical Instruments, Watches & Clock, Machinery and Electronic Industry		679		553		528
Motor Vehicles & Other Transport Equipment Industry		1,502		1,230		1,095
Other Industry		246		200		310

Total Secondary Sector		15,804		11,905		18,139

Tertiary sector:
Electricity, Gas & Water Supply		2,939		1,943		3,045
Construction		93		71		123
Trade & Repair		464		349		650
Hotel & Restaurant		432		295		363
Transportation, Storage & Communication		3,159		2,377		2,613
Housing, Ind. Estate & Office Building		2,186		1,785		2,279
Other Services		1,190		847		1,254

Total Tertiary Sector		10,463		7,667		10,326

Total		31,093		22,722		33,398

Source: BKPM

⁽¹⁾

Excludes foreign investment in oil and natural gas projects, banking, non-bank financial institutions, insurance, leasing, mining in terms of contracts of work, coal mining in terms of agreement of work, investment in which licenses were issued by a technical/sectoral agency, portfolio as well as household investment.

E-14

Domestic Direct Investment

In addition to direct equity investments by foreign persons, BKPM also approves certain types of domestic direct investments. The following table sets forth the amount of realized domestic direct investment by sector of the economy for the periods indicated.

Realized Domestic Direct Investment by Sector⁽¹⁾


	Year Ended December 31,		Nine Months Ended September 30,
	2021		2021		2022

	(in billions of Rupiah)
Primary Sector
Food Crops, Plantation & Livestock		29,375		23,581		29,697
Forestry		6,863		2,470		4,805
Fishery		1,012		760		905
Mining		25,517		19,049		46,571

Total Primary Sector		62,767		45,861		81,978

Secondary sector:
Food Industry		26,518		20,428		37,964
Textile Industry		1,972		1,536		4,009
Leather Goods & Footwear Industry		700		461		279
Wood Industry		1,144		726		2,767
Paper and Printing Industry		7,833		5,689		7,731
Chemical and Pharmaceutical Industry		23,364		12,240		21,162
Rubber and Plastic Industry		7,803		3,850		5,009
Non Metallic Mineral Industry		6,522		5,440		4,903
Metal, Industry not Machinery & Electronic Industry		15,656		10,400		10,368
Medical Precision & Optical Instruments, Watches & Clock, Machinery and Electronic Industry		535		280		2,924
Motor Vehicles & Other Transport Equipment Industry		1,459		1,183		1,713
Other Industry		1,192		743		6,036

Total Secondary Sector		94,699		62,974		104,865

Tertiary sector:
Electricity, Gas & Water Supply		38,728		31,012		24,945
Construction		39,569		29,827		21,490
Trade & Repair		22,432		16,381		26,078
Hotel & Restaurant		17,819		12,755		16,109
Transportation, Storage & Communication		61,242		45,326		60,078
Housing, Ind. Estate & Office Building		85,498		62,773		47,790
Other Services		24,310		20,816		29,818

Total Tertiary Sector		289,598		218,891		226,309

Total		447,064		327,726		413,152

Source: BKPM

⁽¹⁾

E-15

Foreign Trade and Balance of Payments

Exports and Imports

Exports and Imports


	Year Ended December 31,			Nine Months Ended September 30,
	2021^P			2021^P			2022^P

	(in millions of U.S. dollars)
Exports:
Oil and gas exports (f.o.b.)		13,201			9,539			13,059
Non-oil and gas exports (f.o.b.)		219,635			155,810			206,720

Total exports (f.o.b.)		232,835			165,349			219,779
Total imports (c.i.f.)		(198,800	)		(140,879	)		(183,133	)

Balance of trade		34,035			24,470			36,646

Source: Bank Indonesia

^P	Preliminary.

In the first nine months of 2022, Indonesia recorded a trade surplus of U.S.$36.6 billion, which increased by 49.8% from the U.S.$24.5 billion surplus in the same period of 2021. The higher trade surplus was caused by a 32.9% year-on-year increase in exports, which was higher than the 30.0% year-on-year increase in imports (c.i.f). The improvement of export performance was mainly due to persistently high international commodity prices and demand from trading partner. Consistent with stronger exports, imports also experienced an uptick compared to the same period last year as the domestic economy continues to recover.

Export-Import Data from the Central Statistics Agency

In addition to the exports and imports related data published by Bank Indonesia, the Central Statistics Agency or BPS also publishes data relating to imports and exports compiled based on the International Merchandise Trade Statistics Manual issued by the United Nations. Due to the different methods and timing of compiling export- import statistics, the export-import data published by BPS is different to the export-import data published by Bank Indonesia.

The tables below show Indonesia’s exports and imports for the periods indicated as published by the BPS.

Year Ended
December 31,

Eleven Months Ended
November 30,

2021

2021^R

2022^P

(in millions of U.S. dollars)

Exports:

Non-oil and gas exports

219,362.1

198,072.4

253,609.6

Oil and gas exports

12,247.4

11,179.4

14,568.3

Total exports

231,609.5

209,251.8

268,177.9

Imports:

Non-oil and gas imports

170,660.9

152,686.6

180,368.6

Oil and gas imports

25,529.1

22,151.4

37,215.4

Total imports

196,190.0

174,838.0

217,584.0

Source: BPS.

^P	Preliminary.

Revised.

E-16

Exports

The following table sets forth Indonesia’s exports by major commodity groups for the periods indicated.

Exports by Sector


	Year Ended December 31,		Nine Months Ended September 30,
	2021^P		2021^P		2022^P

	(in thousands of U.S. dollars)
General merchandise		231,316,430		164,048,097		218,976,772
Agricultural
Coffee bean		848,285		558,887		804,668
Tea		62,171		45,795		47,084
Spices		678,397		508,134		453,700
Tobacco		73,901		45,498		85,460
Cocoa bean		56,244		41,554		41,661
Shrimp and prawn		1,644,429		1,185,629		1,203,608
Other agricultural products		3,303,394		2,310,921		2,681,313

Total Agricultural products		6,666,820		4,696,418		5,317,494

Manufacture products
Textile and Textile products		13,182,868		9,462,237		10,910,593
Processed wood products		4,636,060		3,196,709		3,444,682
Palm oils		26,516,433		19,572,242		20,405,711
Chemicals		6,546,591		4,904,975		5,614,342
Base metal products		30,443,013		20,787,413		31,505,018
Electrical apparatus, measuring instruments and others		11,730,664		8,551,379		10,790,644
Cement		402,352		320,782		293,281
Paper and paper products		4,284,955		3,246,666		3,577,908
Processed rubber		6,832,214		5,169,169		4,921,279
Oil products⁽¹⁾		1,899,971		1,360,130		3,494,891
Liquefied Petroleum Gas⁽¹⁾		4,185		1,610		24,707
Other manufacture products		68,334,868		49,321,544		60,689,057

Total Manufacture products		174,814,175		125,894,855		155,672,113

Mining products
Copper ore		5,386,321		3,801,968		7,092,805
Nickel ore		0		0		1
Coal		31,505,219		20,342,310		39,572,363
Bauxite		628,176		360,910		502,682
Crude oil⁽¹⁾		2,956,045		2,597,897		1,274,736
Natural Gas⁽¹⁾		7,178,270		4,780,575		6,891,399
o/w LNG		4,294,339		2,767,557		4,405,321
Other mining products		485,173		322,029		453,541

Total Mining products		48,139,205		32,205,689		55,787,527

Other merchandise⁽²⁾		1,696,229		1,251,134		2,199,638
Other goods⁽³⁾		1,518,852		1,300,907		802,467

Total Exports		232,835,282		165,349,004		219,779,239

Memorandum⁽⁴⁾
Non-oil & gas exports		219,634,699		155,809,986		206,719,766
Oil & gas exports		13,200,583		9,539,018		13,059,474

E-17

Source: Bank Indonesia

^P	Preliminary.

⁽¹⁾	As a component of oil and gas exports.

⁽²⁾	Consists of art goods, goods not elsewhere specified, and goods procured in ports by carriers.

⁽³⁾	Consists of non-monetary gold and merchanting goods.

⁽⁴⁾	Presents the classification of exports based on two main groups of commodities: (i) oil and gas and (ii) non-oil and gas.

The table below sets forth Indonesia’s exports by destination for the periods indicated.

Exports by Destination


	Year Ended December 31,		Nine Months Ended September 30,
	2021^P		2021^P		2022^P

	(in thousands of U.S. dollars)
America
North America
United States of America		25,765,002		18,242,941		22,092,818
Canada		1,064,214		756,975		995,479
Other North America		1,620		1,142		1,350
Total North America		26,830,836		19,001,058		23,089,647
Central and South America
Argentina		281,227		182,626		267,648
Brazil		1,504,539		1,148,999		1,185,932
Mexico		1,298,970		884,403		1,268,550
Other Central and South America		1,910,190		1,304,684		1,735,907

Total Central and South America		4,994,925		3,520,712		4,458,037

Total America		31,825,761		22,521,770		27,547,684

Europe
European Union
Netherlands		4,624,534		3,325,335		4,296,759
Belgium		1,635,031		1,157,485		1,651,042
United Kingdom		1,474,290		1,090,897		1,218,565
Italy		2,804,545		1,988,123		2,422,270
Germany		2,912,856		2,101,193		2,441,731
France		996,178		713,999		800,634
Spain		2,347,650		1,734,640		1,655,649
Other European Union		2,657,501		1,907,345		2,721,575

Total European Union		19,452,584		14,019,017		17,208,226

Russia		1,492,891		1,093,300		1,042,952
Turkey		1,599,382		1,195,344		1,563,849
Other Europe		2,162,096		1,666,505		1,869,078

Total Europe		24,706,953		17,974,166		21,684,106

E-18


	Year Ended December 31,		Nine Months Ended September 30,
	2021^P		2021^P		2022^P

	(in thousands of U.S. dollars)

Asia and Middle East
ASEAN
Brunei Darussalam		211,268		147,749		173,797
Philippines		8,590,823		6,104,029		9,574,130
Cambodia		530,909		379,210		525,363
PDR Laos		7,578		5,514		24,434
Malaysia		11,954,531		8,680,220		11,979,486
Myanmar		1,117,043		807,010		672,980
Singapore		12,167,500		8,781,549		11,490,321
Thailand		7,110,300		5,279,803		6,344,792
Vietnam		6,842,952		5,028,877		6,161,784

Total ASEAN		48,532,903		35,213,960		46,947,087

Hong Kong SAR		2,001,026		1,401,330		2,178,060
India		13,308,709		9,746,880		17,931,563
Iraq		218,389		151,250		283,885
Japan		17,595,122		12,554,159		18,087,689
South Korea		9,161,223		6,655,040		9,403,781
Pakistan		3,823,688		2,783,923		3,116,842
People’s Republic of China		53,278,076		36,087,710		46,887,440
Saudi Arabia		1,580,531		1,081,105		1,482,927
Taiwan		6,726,353		4,725,879		6,472,433
Other Asia and Middle East		8,676,922		6,062,632		7,845,972

Total Asia and Middle East		164,902,943		116,463,869		160,637,681

Australia and Oceania
Australia		3,236,357		2,479,614		2,623,651
New Zealand		717,463		516,998		559,475
Other Australia and Oceania		403,551		279,637		357,329

Total Australia and Oceania		4,357,371		3,276,249		3,540,455

Africa
South Africa		965,270		707,967		867,409
Other Africa		4,388,304		3,159,292		3,306,868

Total Africa		5,353,573		3,867,259		4,174,276

Unclassified exports⁽¹⁾		1,688,680		1,245,690		2,195,037

Total (f.o.b.)		232,835,282		165,349,004		219,779,239

Source: Bank Indonesia

^P	Preliminary.

⁽¹⁾	Consists of goods procured in ports by carriers and merchanting goods.

E-19

Imports

The following table sets forth Indonesia’s imports by major commodity groups for the periods indicated.

Imports by Sector⁽¹⁾


	Year Ended December 31,		Nine Months Ended September 30,
	2021^P		2021^P		2022^P

	(in thousands of U.S. dollars)
General Merchandise		196,118,688		139,109,394		180,471,881
Consumption Goods
Food and beverages, primary, mainly for household		2,754,783		1,883,438		2,000,717
Food and beverages, processed, mainly for household		3,860,341		2,865,480		3,697,757
Passenger motor cars		375,210		293,205		438,989
Transport equipment, nonindustrial		229,968		158,963		214,365
Durable consumer goods		2,227,130		1,663,545		1,777,570
Semi-durable consumer goods		3,547,131		2,592,405		3,007,278
Non-durable consumer goods		5,931,056		4,109,464		2,621,872
Fuels and lubricants, processed, oil products⁽²⁾		7,567,201		4,755,780		11,239,282
Goods not elsewhere specified		308,987		233,311		232,975

Total Consumption Goods		26,801,807		18,555,590		25,230,805

Raw materials and auxiliary goods
Food and beverages, primary, mainly for industry		6,791,471		5,117,477		5,381,789
Food and beverages, processed, mainly for industry		4,408,737		3,540,310		4,561,901
Industrial supplies, primary		7,409,535		5,360,192		6,110,995
Industrial supplies, processed		69,801,404		49,452,990		59,899,930
Parts and accessories for capital goods		20,765,500		15,231,689		18,054,008
Parts and accessories for transport equipment		8,039,984		5,765,812		7,156,434
Fuels and lubricants, primary		10,014,214		6,791,272		13,231,799
o/w Crude oil⁽²⁾		7,886,555		5,539,344		10,395,832
Fuels and lubricants, processed		12,669,639		8,566,570		13,193,162
o/w Oil products⁽²⁾		7,367,209		4,939,234		8,193,905
o/w Liquefied Petroleum Gas⁽²⁾		4,713,059		3,144,616		4,356,879

Total Raw materials and auxiliary goods		139,900,484		99,826,312		127,590,018

Capital Goods
Capital goods (except transport equipment)		25,371,226		17,942,565		23,313,720
Passenger motor cars		375,210		293,205		438,989
Other transport equipment, industrial		3,085,572		2,021,866		3,366,412

Total Capital Goods		28,832,008		20,257,637		27,119,121

Other merchandise⁽³⁾		584,389		469,856		531,937
Other goods⁽⁴⁾		2,681,663		1,769,315		2,661,358

Total		198,800,351		140,878,709		183,133,240

E-20

Source: Bank Indonesia

^P	Preliminary.

⁽¹⁾	Data collected on a cost, insurance and freight basis.

⁽²⁾	As a component of oil and gas imports.

⁽³⁾	Consists of goods procured in ports by carriers.

⁽⁴⁾	Consists of nonmonetary gold.

The following table sets forth Indonesia’s imports by country of origin for the periods indicated.

Imports by Place of Origin⁽¹⁾


	Year Ended December 31,		Nine months ended September 30,
	2021^P		2021^P		2022^P

	(in thousands of U.S. dollars)
America
North America
United States of America		11,607,176		8,281,471		8,838,278
Canada		2,039,320		1,570,481		2,209,795
Other North America		0		0		0

Total North America		13,646,496		9,851,952		11,048,073
Central and South America
Argentina		2,028,162		1,509,995		1,998,338
Brazil		2,357,034		1,850,383		2,593,770
Mexico		251,035		168,757		246,141
Other Central and South America		600,554		357,011		462,924
Total Central and South America		5,236,784		3,886,147		5,301,173

Total America		18,883,280		13,738,099		16,349,246
Europe
European Union
Netherlands		877,900		614,638		656,617
Belgium		763,083		459,466		455,073
United Kingdom		1,116,936		810,536		760,081
Italy		1,674,996		1,308,983		1,058,315
Germany		3,057,219		2,184,184		2,619,429
France		1,316,552		966,826		1,035,789
Spain		676,814		381,771		445,383
Other European Union		2,413,677		1,700,191		2,137,859

Total European Union		11,897,176		8,426,596		9,168,546
Russia		1,033,735		692,903		1,261,603
Turkey		353,531		257,235		323,813
Other Europe		2,732,492		1,707,588		1,708,347

Total Europe		16,016,934		11,084,322		12,462,309

E-21


	Year Ended December 31,		Nine months ended September 30,
	2021^P		2021^P		2022^P

	(in thousands of U.S. dollars)
Asia and Middle East
ASEAN
Brunei Darussalam		156,977		123,769		489,686
Philippines		1,169,335		842,657		1,038,842
Cambodia		50,094		38,166		42,326
PDR Laos		38,976		22,069		140,880
Malaysia		9,634,006		6,462,586		9,878,674
Myanmar		164,217		136,806		95,806
Singapore		18,470,973		13,154,515		17,753,727
Thailand		8,920,455		6,420,942		8,373,001
Vietnam		3,972,949		2,880,277		3,445,526

Total ASEAN		42,577,980		30,081,787		41,258,468
Hong Kong SAR		5,557,561		4,125,946		3,616,610
India		7,057,958		5,129,131		7,336,795
Iraq		110		103		624
Japan		15,533,193		10,966,474		12,929,887
South Korea		9,773,262		7,013,187		9,210,074
Pakistan		192,770		156,595		134,543
People’s Republic of China		53,649,120		37,538,418		48,674,845
Saudi Arabia		4,359,067		2,730,075		4,647,209
Taiwan		4,293,046		3,092,931		3,363,923
Other Asia and Middle East		5,166,872		3,758,142		5,722,709

Total Asia and Middle East		148,160,938		104,592,788		136,895,686
Australia
Australia		9,404,535		6,590,310		7,214,866
New Zealand		954,512		726,741		1,066,049
Other Australia and Oceania		39,107		25,767		59,496

Total Australia and Oceania		10,398,154		7,342,817		8,340,411
Africa
South Africa		634,585		421,584		1,611,962
Other Africa		4,122,070		3,229,244		6,941,689

Total Africa		4,756,656		3,650,828		8,553,650
Unclassified imports⁽²⁾		584,389		469,856		531,937

Total		198,800,351		140,878,709		183,133,240

Source: Bank Indonesia

^P	Preliminary.

⁽¹⁾	Data collected on a cost, insurance and freight basis.

⁽²⁾	Consists of goods procured in ports by carriers.

E-22

Balance of Payments

The following table sets forth the Republic’s balance of payments for the periods indicated.

Balance of Payments⁽¹⁾


	Year Ended December 31			Nine months ended September 30,
	2021^P			2021^P			2022^P

	(in millions of U.S. dollars)
Current account		3,465			1,954			8,969
Goods⁽²⁾		43,806			31,373			45,613
Total exports (f.o.b.)		232,835			165,349			219,779
Non-oil and gas exports		219,635			155,810			206,720
Oil and gas exports		13,201			9,539			13,059
Total imports (f.o.b.)		(189,029	)		(133,976	)		(174,166	)
Non-oil and gas imports		(162,864	)		(116,516	)		(141,637	)
Oil and gas imports		(26,166	)		(17,460	)		(32,529	)
Services		(14,644	)		(10,682	)		(14,592	)
Primary income		(31,961	)		(23,051	)		(26,478	)
Secondary income		6,264			4,314			4,426
Capital account		80			17			6
Financial account		12,423			14,769			(9,223	)
(i) Public sector		4,317			8,832			(7,728	)
Portfolio investment		(616	)		4,303			(7,692	)
Assets		—			—			—
Liabilities		(616	)		4,303			(7,692	)
Other investment		4,933			4,529			(36	)
Assets		—			—			—
Liabilities		4,933			4,529			(36	)
Loans		(1,377	)		(1,781	)		(36	)
Drawings		4,355			2,543			3,902
Repayments		(5,732	)		(4,324	)		(3,939	)
Other liabilities		6,310			6,310			—
(ii) Private sector		8,106			5,937			(1,495	)
Direct investment		17,423			13,373			10,373
Assets		(3,939	)		(2,858	)		(4,664	)
Liabilities		21,362			16,231			15,037
Portfolio investment		5,688			5,792			1,045
Assets		(1,778	)		(1,305	)		(3,804	)
Liabilities		7,466			7,098			4,849
Financial derivatives		333			306			59
Other investment		(15,338	)		(13,534	)		(12,972	)
Assets		(9,789	)		(11,312	)		(12,280	)
Liabilities		(5,549	)		(2,223	)		(693	)
Errors and omissions		(2,507	)		(2,435	)		(482	)
Overall balance		13,461			14,305			(731	)
Reserves and related items		(13,461	)		(14,305	)		731
Memorandum⁽³⁾
Reserve asset position		144,905			146,870			130,782

E-23

Source: Bank Indonesia

^P	Preliminary.

⁽¹⁾

Bank Indonesia uses (+) and (-) signs in its published data to follow BPM5 whereby (+) means inflow and (-) means outflow. In financial account, (+) denotes increase in liabilities or decrease in assets, while (-) represents increase in assets or decrease in liabilities. The table above has been adjusted to align with the formatting hereof.

⁽²⁾	The calculation of export and import figures included in the balance of payments data compiled by Bank Indonesia differs in coverage and timing from the data on export/import trade compiled by BPS.

⁽³⁾	Presents the position of reserve assets at the end of period. A surplus/deficit in the overall balance of payments during a reporting period will increase/decrease the outstanding amount of reserve assets at the end of that period.

The current account recorded a U.S.$9.0 billion surplus in the first nine months of 2022, higher than U.S.$2.0 billion surplus recorded in the same period of 2021. The improvement was primarily supported by a goods trade surplus due to stronger exports in line with persistently high international commodity prices and solid demand from trading partners, amidst increment of imports as domestic demand rose. On the other hand, the services trade balance deficit widened as public mobility increased and domestic economic recovery accelerated. The primary income deficit also increased in response to higher income payments on direct investment, which was in line with corporate performance improvements.

The capital and financial account recorded a U.S.$9.2 billion deficit in the first nine months of 2022, reversing from U.S.$14.8 billion surplus in the same period of 2021, amidst elevated global financial market uncertainty. Direct investment persistently booked surplus in the first nine months of 2022, reflecting investor optimism in the promising domestic economic outlook and a conducive domestic investment climate, which supported capital and financial account performance. Meanwhile, portfolio investment recorded a deficit, mainly due to outflow in the domestic SBN market in line with increasing global financial market uncertainty amid ongoing measures in various economies to tighten monetary policy more aggressively. Other investment also recorded a deficit due to private asset placements in several financial instruments abroad and net payments of external debt.

Indonesia’s balance of payments in the first nine months of 2022 recorded a low deficit of U.S.$0.7 billion, accompanied by official reserve assets of U.S.$130.8 billion as end of September, 2022.

Financial System

The Banking System

As of October 31, 2022, total banking assets were Rp11,009.9 trillion, consisting of commercial bank assets of Rp10,814.1 trillion and rural bank assets (including assets of sharia rural banks) of Rp195.9 trillion.

Islamic Financial System

As of October 31, 2022, of the 87 underwriters licensed by OJK, only 30 were involved in issuances of Sukuk, and from 96 investment managers, there are 61 investment managers having Sharia Investment Management Unit and one sharia investment manager.

As of October 31, 2022, assets of Sharia banks were Rp725.1 trillion, or 6.6% of Indonesia’s total banking assets.

E-24

Bank Indonesia

The following table sets forth the balance sheet of Bank Indonesia and was prepared in accordance with the Monetary and Financial Statistics Manual published by the IMF, as of the dates indicated.

Analytical Balance Sheet of Bank Indonesia


	As of October 31,
	2021^P			2022^P
Base Money (M0)		1,133,928			1,603,177
Currency in Circulation⁽¹⁾		854,283			905,857
Commercial Banks Demand Deposits at Bank Indonesia		278,278			695,530
Private sector Demand Deposits		1,367			1,791
Bank Indonesia Certificates (“SBI”)⁽²⁾		—			—
Factors Affecting Base Money (M0)		1,133,928			1,603,177
Net Foreign Assets		1,935,069			1,904,448
Claims on Non-Residents		2,144,157			2,109,030
Liabilities to Non-Resident		(209,089	)		(204,581	)
Claims on Other Depository Corporations		56			56
Liquidity Credits		56			56
Other Claims					—
Net claims on central Government		(185,414	)		(430,910	)
Claims on central Government		115,366			106,004
Liabilities to central Government		300,780			536,913
Claims on Other Sectors		9,815			9,884
Claims on Other Financial Institutions		—			—
Claims on Private Sectors		9,815			9,884
Open Market Operations⁽³⁾		(79,208	)		510,016
Other Liabilities to Commercial & Rural Banks		(83,904	)		(94,415	)
Deposits included in Broad Money (M2)					—
Deposits excluded from Broad Money (M2)					—
Shares and Other Equity		(410,861	)		(292,762	)
Net Other Items		(51,625	)		(3,140	)

Source: Bank Indonesia

^P	Preliminary.

⁽¹⁾	Currency outside banks plus cash in vault.

⁽²⁾

SBI which is used to fulfil the secondary statutory reserve requirement of banks and accounted for as primary money supply components. Included in base money from October 2009 to June 2018. Starting from July 2018 SBI is not accounted as component of primary money supply, due to changes in the reserve requirement regulation.

⁽³⁾

Consists of total SBI after it is reduced by the SBI used to fulfil the secondary statutory reserve requirement of banks, and is accounted for as a primary money supply component (see footnote 2). Such SBI types include: Syariah SBI, Third Party Syariah SBI, Bank Indonesia Facility, Fine Tune Operation, Government Bonds, State Syariah Negotiable Paper, and Reserve Reverse Repo Government Bonds.

E-25

Banks and Other Financial Institutions

The following table sets forth the total number of financial institutions in operation and their share of total assets of the financial system as of the date indicated.

Indonesian Financial Institutions as of September 30, 2022


	Number of institutions			Assets*			Percentage of total assets
				(in trillions of Rupiah)			(%)
Banking:**
Commercial banks		107			10,814.1			75.5
Rural credit banks⁽¹⁾		1,612			195.9			1.4

Total banking		1,719			11,009.9			76.9

Insurance:
Life insurance		61			632.0			4.4
General insurance & Reinsurance		85			239.5			1.7
Social insurance⁽²⁾		5			876.3			6.1

Total insurance		151			1,747.8			12.2

Pension funds:
Financial institution pension funds		26			118.2			0.8
Employer pension funds		176			219.3			1.5

Total pension funds		202			337.5			2.4

Finance companies⁽³⁾		154			466.3			3.3
Venture capital companies		56			24.2			0.2
Securities companies**		121	⁽⁴⁾		79.2	⁽⁵⁾		0.6
Mutual funds (collective investment schemes, not institutions)**		2,181			518.7			3.6
Credit guarantee companies		22			40.5			0.3
Pawn shops		136			71.2			0.5
Fintech peer to peer Lending⁽⁶⁾		102			5.1			0.0
Micro Financial Institution⁽⁷⁾		238			1.4			0.0
Insurance and Reinsurance Brokers		196			17.4			0.1

Total		3,206			14,319.1			100.0

Sources: OJK

*	Unaudited.

**	As of October 31, 2022.

⁽¹⁾	Including sharia rural banks.

⁽²⁾	Social insurance encompasses traffic and public transportation, health social security programs, worker social security programs and insurance for civil servants and the armed forces.

⁽³⁾	Finance companies provide investment financing, working capital financing, multipurpose financing, sharia financing and other financing based on OJK approval.

⁽⁴⁾	Includes 29 securities companies that are not members of a securities exchange but acting as broker-dealers.

⁽⁵⁾	Assets of securities companies as members of a securities exchange for the position of June 30, 2022.

⁽⁶⁾	Fintech peer to peer Lending includes sharia.

⁽⁷⁾	Micro Financial Institution includes sharia MFI. Assets based on data as of August 31, 2022, number of institutions based on data as of September 30, 2022.

E-26

Bank Assets and Liabilities

The following table sets forth the consolidated balance sheet of the commercial banks as of the dates indicated.

Consolidated Balance Sheet of Commercial Banks


	As of December 31,		As of October 31,
	2021		2022^P
	(in trillions of Rupiah)
Assets
Loans		5,820.6		6,400.6
Interbank Assets		223.1		231.0
Placements at Bank Indonesia		1,146.4		1,190.9
Securities (including Government Bonds)		1,831.0		1,845.8
Equity Participation		96.5		104.9
Other Claims		623.6		636.4
Others		371.1		404.6

Total Assets		10,112.3		10,814.1
Liabilities
Third Party Funds		7,479.5		7,927.0
Liabilities owed to Bank Indonesia		1.7		1.0
Interbank Liabilities		160.6		165.8
Securities		117.7		111.4
Borrowing		227.6		285.6
Other Liabilities		125.8		166.0
Guarantee Deposits		4.6		4.2
Others		523.7		601.8
Capital:
Paid in Capital		261.7		274.0
Reserves		81.2		88.5
Current Earnings/Loss		140.2		170.0
Retained Earnings/Loss		648.3		688.4
Estimates of Additional Paid in Capital		274.0		251.8
Others		65.9		78.5

Total Liabilities		10,112.3		10,814.1

Source: OJK.

^P	Preliminary.

The following table shows the average capital adequacy ratio of the banking system as of the dates indicated:

Average Capital Adequacy Ratios


	As of December 31,		As of October 31,
	2021		2022^P

	(percentages)
CAR		25.7		25.1

Source: OJK

^P	Preliminary.

E-27

Non-Performing Loans

The following table shows the gross NPL ratios as of the dates indicated.

Non-Performing Loans Ratios


	As of December 31,		As of October 31,
	2021		2022^P

	(percentages)
Gross NPL ratio		3.0		2.7

Source: OJK

^P	Preliminary.

Capital Markets and Capital Markets Regulation

The following table sets forth key indicators regarding the IDX and any securities traded on the IDX as of and for the eleven months ended November 30, 2022.

Indonesian Stock Exchange


	IDX
Market capitalization (in trillions of Rupiah)		9,559.9
Listed shares (in billions of shares)		9,478.2
Average daily transaction value (in billions of Rupiah)⁽¹⁾		14,858.0
Average daily transaction volume (in millions of shares)⁽¹⁾		23,883.0

Source: IDX

⁽¹⁾	For the eleven months ended November 30, 2022.

The IDX, a self-regulatory body, has two indices based on Sharia stock, the Jakarta Islamic Index (“JII”), and the Indonesia Sharia Stock Index (“ISSI”).

The JII is a stock market index established on the Indonesian Stock Exchange. The JII was launched in 2000 and consists of the 30 largest Sharia- compliant listings by market capitalization and average liquidity in the regular market. As of November 30, 2022, the market capitalization of the JII was Rp2,252.5 trillion.

The IDX launched the Indonesia Sharia Stock Index, or ISSI on May 12, 2011. The ISSI is comprised of 502 Sharia stocks which are listed on the IDX as of November 30, 2022. As of November 30, 2022, the market capitalization of the ISSI was Rp4,529.9 trillion.

Monetary Policy

In December 2022, Bank Indonesia raised the BI7DRR by 25 bps to 5.50%, while also raising the deposit facility and lending facility rates by 25 bps to 4.75% and 6.25%, respectively. Bank Indonesia continues to strengthen the Rupiah exchange rate stabilization policy to control imported inflation and mitigate the spillover effects arising from the strong US dollar and high global financial market uncertainty.

The policy mix that Bank Indonesia has implemented to maintain stability and economic recovery momentum includes the following actions:

Strengthening monetary operations by increasing the interest rate structure in the money market in accordance with the higher BI7DRR mentioned above;

E-28

Strengthening Rupiah exchange rate stabilization policy as part of the measures to control inflation, primarily imported inflation, through foreign exchange intervention, including spot and DNDF transactions, as well as buying/selling SBN in secondary market;

Continuing to buy/sell SBN in the secondary market to strengthen transmission of the higher BI7DRR by increasing the attractiveness of SBN yields for foreign portfolio investment inflows to strengthen Rupiah exchange rate stabilization measures;

Issuing new foreign exchange monetary operation instruments to boost domestic placement of export proceeds, especially from natural resources, by banks and exporters to strengthen stabilization, including Rupiah exchange rate stability and national economic recovery. The foreign exchange monetary operation instruments are applied with competitive yields based on a transparent market mechanism and incentives given to banks;

Strengthening accommodative, inclusive, and sustainable macroprudential policy to boost the growth of credit/financing by banks, primarily non-recovering priority sectors, People’s Business Credit, and green credit/financing, to support economic recovery through amendment of the reserve requirement incentive to be applied from April 1, 2023;

Continuing prime lending rate transparency policy with a focus on bank’s interest rate responses to the policy rate;

Strengthening payment system policy to increase efficiency in order to maintain economic recovery momentum;

Taking strategic steps to ensure orderly national payment system to anticipate Christmas and New Year; and

Strengthening international cooperation with other central banks and partner country authorities, and facilitation of investment and trade promotion implementation in priority sector in cooperation with the relevant institutions.

Money Supply

The following table sets forth the money supply as of the periods indicated.


			Money
End of period	Base Money		Currency		Demand deposits		Rupiah saving deposits⁽¹⁾		Total^M1(1)		Quasi- money		Securities other than shares		Total^M2
	(in billions of Rupiah)
June 2021		1,069,791		739,006		1,176,423		1,949,691		3,865,120		3,248,484		16,457		7,130,061
December 2021		1,351,172		831,234		1,450,967		2,131,756		4,413,956		3,433,822		22,675		7,870,453
October 2022		1,603,177		808,649		1,730,418		2,145,317		4,684,384		3,512,633		26,038		8,223,055

Source: Bank Indonesia

^P	Preliminary.

^M1	Narrow Money.

^M2	Broad Money.

⁽¹⁾	Since September 2021, rupiah saving deposits that can be withdrawn at any time is reclassified from quasi- money to narrow money, due to their highly liquidity.

E-29


	Factors affecting money supply
End of period	Foreign assets (net)		Claims on central Government (net)⁽¹⁾		Claims on business sectors		Other items (net)⁽²⁾

	(in billions of Rupiah)
June 2021		1,809,372		797,333		5,186,540		829,915
December 2021		1,809,680		1,127,267		5,444,160		1,007,279
October 2022^P		1,763,959		862,976		5,870,010		1,097,423

Source: Bank

Indonesia

^P	Preliminary.

⁽¹⁾	Claims on the Government include net of the Government’s deposits with the banking system.

⁽²⁾	Includes capital accounts, tradeable government bonds held by central bank and inter-system accounts.

As of October 31, 2022, broad money grew by 9.8% (year-on-year) compared to 10.5% (year-on-year) as of the same date in the previous year, due to much slower growth of quasi money, despite a faster growth of narrow money. Narrow money growth slightly increased to 14.9% (year-on-year) as of October 31, 2022 compared to 14.6% (year-on-year) as of the same date in the previous year, due to faster growth of Rupiah demand deposits. Quasi-money growth decreased to 3.5% (year-on-year) compared to 6.0% (year-on-year) at the same date in the previous year, due to slower growth in Rupiah time deposits.

E-30

Government Budget

Fiscal Policy

The following table sets forth Government revenues and expenditures for the periods indicated.

Government Revenues and Expenditures


	Year Ended December 31,												Eleven Months ended November 30,
	2021^L			2022^B			2022^R			2023^B			2021			2022^P
Revenues and grants:
Domestic revenues
Tax revenues		1,547.8			1,510.0			1,784.0			2,021.2			1,314.8			1,849.1
Non-tax revenue		458.5			335.6			481.6			441.4			382.6			527.3
Total domestic revenues		2,006.3			1,845.6			2,265.6			2,462.6			1,697.4			2,376.3
Grants		5.0			0.6			0.6			0.4			2.1			1.2

Total revenues and grants		2,011.3			1,846.1			2,266.2			2,463.0			1,699.4			2,377.5

Expenditures:
Central government expenditures		2,000.7			1,944.5			2,301.6			2,246.5			1,599.3			1,882.6
Transfer to regions and rural fund		785.7			769.6			804.8			814.7			711.0			731.7

Total expenditures		2,786.4			2,714.2			3,106.4			3,061.2			2,310.4			2,614.4

Primary balance⁽¹⁾		(431.6	)		(462.2	)		(434.4	)		(156.8	)		(281.7	)		126.0
Surplus/(deficit)		(775.1	)		(868.0	)		(840.2	)		(598.2	)		(610.9	)		(236.9	)

Financing:⁽²⁾
Debt Financing		870.5			973.6			943.7			696.3			660.7			510.2
Investment Financing		(142.5	)		(182.3	)		(230.2	)		(176.0	)		(113.2	)		(72.8	)
On-Lending		1.9			0.6			0.6			5.3			2.9			2.9
Government Guarantee		(2.7	)		(1.1	)		(1.1	)		(0.3	)		(2.7	)		(1.1	)
Other Financing		144.4			77.3			127.3			72.8			56.8			0.6

Total Financing		871.7			868.0			840.2			598.2			604.5			439.9

Source:

Ministry of Finance.

^L	LKPP (Financial Report of Central Government/Audited).

Budget.

^R	Revised Budget.

^P	Preliminary.

⁽¹⁾	Primary balance represents revenues minus expenditures excluding interest expenditures.

⁽²⁾	In 2021, total financing of Rp871.7 trillion exceeded the 2021 deficit of Rp775.1 trillion and the Government added the difference of Rp96.7 trillion to its reserves.

2023 Budget

On October 27, 2022, the Government promulgated Law No. 28 of 2022 on State Budget for 2023, effective as of January 1, 2023. The theme of fiscal policy in 2023 is “Increasing Productivity for Inclusive and Sustainable Economic Transformation.” Based on this theme, the policy strategy to be implemented by the Government is focused on (1) strengthening the quality of human resources through policies in the fields of health, education, and social protection; (2) accelerating infrastructure development; (3) strengthening bureaucratic reforms; (4) industrial revitalization; and (5) green economic development. The state budget must continue to be a reliable tool in dealing with the various fluctuations encountered to protect the populace and maintain the pace of recovery.

E-31

The key macroeconomic assumptions for 2023 underlying the 2023 Budget contained in the bill are as follows:

•

an economic growth rate of 5.3%;

•

an inflation rate of 3.6%;

•

an exchange rate of Rp14,800 to U.S.$1.00;

•

an average Government 10-year bond rate of 7.90%;

•

an ICP of U.S.$90 per barrel;

•

an oil production by the Republic of 660 thousand barrels of oil per day; and

•

gas production by the Republic of 1.100 million barrels of oil equivalent of gas per day.

Total revenue in the 2023 Budget is expected to be Rp2,463.0 trillion, or an increase of 8.7% from the 2022 Revised Budget of Rp2,266.2 trillion. Total revenue comprises Rp2,021.2 trillion in tax revenues and Rp441.4 trillion in non-tax revenues, taking into account various factors such as economic capacity, the investment climate, and business competitiveness in measuring the tax base. The role of the non-tax revenues as a regulatory instrument will be to encourage economic activity, support business activity, and improve the quality of social services.

Total expenditures under the 2023 Budget are estimated at Rp3,061.2 trillion, or a 1.5% decrease from the 2022 Revised Budget of Rp3,106.4 trillion, comprising Rp2,246.5 trillion in central Government expenditures and Rp814.7 trillion in transfer to regional and rural funds. Allocations in the 2023 Budget include (i) Rp178.7 trillion for health budget; (ii) Rp476.0 trillion for social protection budget; (iii) Rp612.2 trillion for education; and (iv) Rp391.7 trillion for infrastructure development.

In 2023, the Government is committed to taking steps toward fiscal consolidation by returning the budget deficit to below 3% of GDP. Fiscal consolidation is necessary to ensure medium- and long-term fiscal sustainability. The primary deficit in the 2023 Budget is projected to be Rp598.2 trillion, or 2.84% of projected 2023 GDP, expected to fall below 3% of GDP, supported by fiscal reforms and stronger economic recovery. The smaller deficit gives the budget and the economy protection in light of the rise in interest rates and the depreciation of the exchange rate, which have created instability in the financial sector. The budget deficit has decreased gradually from 6.14% in 2020 to 4.57% in 2021 and is expected to further decrease to 3.92% in 2022. The Government expects to fund the deficit from debt financing.

E-32

Government Finances

The following table sets forth information regarding the revenues and expenditures of the Government for the periods indicated.

Government Revenues

The following table sets forth Government revenues by category for the periods indicated.

Government Revenues


	Year Ended December 31,								Eleven Months Ended November 30,
	2021^L		2022^B		2022^R		2023^B		2021^P		2022^P

	(in trillions of Rupiah)
Domestic revenues:
Tax revenues:
Domestic tax
Income tax:
Oil and gas		52.8		47.3		64.7		61.4		46.0		72.7
Non-oil and gas		643.8		633.6		749.0		873.6		554.7		852.1

Total income tax		696.7		680.9		813.7		935.1		600.6		924.8
Value added tax (VAT)		551.9		554.4		639.0		743.0		453.7		615.9
Land and building tax		18.9		18.4		20.9		31.3		17.9		21.3
Excises		195.5		203.9		220.0		245.4		167.5		195.7
Other taxes		11.1		11.4		11.4		8.7		10.3		6.8

Total domestic taxes		1,474.1		1,468.9		1,705.0		1,963.5		1,250.1		1,764.6

International trade taxes:
Import duties		39.1		35.2		42.3		47.5		34.4		45.8
Export tax		34.6		5.9		36.7		10.2		30.4		38.7

Total international trade taxes		73.7		41.1		79.0		57.7		64.7		84.5

Total tax revenues		1,547.8		1,510.0		1,784.0		2,021.2		1,314.8		1,849.1

Non-tax revenues:
Natural resources:
Oil		65.0		64.6		106.5		96.1		62.5		108.7
Gas		31.6		21.3		32.6		35.0		17.5		27.4

Total oil and gas		96.6		85.9		139.1		131.2		80.0		136.1
General mining		44.8		28.0		78.9		54.0		39.5		94.9
Forestry		5.4		4.9		5.2		5.2		4.6		4.9
Fishery		0.7		1.6		1.7		3.5		0.6		1.0
Geothermal		1.9		1.6		1.6		2.1		1.4		1.6

Total non-oil and gas		52.9		36.0		87.4		64.8		46.0		102.4

Total natural resources		149.5		122.0		226.5		196.0		126.0		238.5

Profit transfer from SOEs		30.5		37.0		37.1		49.1		30.5		40.6
Other non-tax revenues		152.5		97.8		112.2		113.3		123.1		173.2
Public Service Agency (BLU) Income		126.0		78.8		105.8		83.0		103.0		75.0

Total non-tax revenues		458.5		335.6		481.6		441.4		382.6		527.3

Total domestic revenues		2,006.3		1,845.6		2,265.6		2,462.6		1,697.4		2,376.3

Grants		5.0		0.6		0.6		0.4		2.1		1.2

Total revenues and grants		2,011.3		1,846.1		2,266.2		2,463.0		1,699.4		2,377.5

E-33

Source: Ministry

of Finance.

^L	LKPP (Financial Report of Central Government/Audited).

Budget.

^R	Revised Budget.

^P	Preliminary.

The Government revenues realization had improved by a positive 39.9%, from Rp1,699.4 trillion in the eleven months ended November 30, 2021, to Rp2,377.5 trillion in the eleven months ended November 30, 2022, supported by rising commodity prices and maintained economic recovery. Total tax revenues increased by 40.6% from Rp1,314.8 trillion to Rp1,849.1 trillion, due to the increasing commodity prices, the expansive economic growth, and the implementation of the Law No. 7 of 2021 on Harmonization on Tax Regulation. Total non-tax revenues increased by 37.8% from Rp382.6 trillion to Rp527.3 trillion, driven by significant increases in commodity prices and increases in the dividends of banking SOEs.

E-34

Government Expenditures

The following table sets forth the expenditures of the Government for the periods indicated.

Government Expenditures


	Year ended December 31,								Eleven Months Ended November 30,
	2021^L		2022^B		2022^R		2023^B		2021		2022^P

	(in trillions of Rupiah)
Central Government expenditures:
Personnel expenditures		387.8		426.5		426.5		442.5		361.5		372.6
Good and services expenditures		530.1		339.7		339.7		376.9		409.2		342.7
Capital expenditures		239.6		199.2		199.2		209.2		160.4		153.1
Interest payments:
Domestic debt		332.9		393.7		393.7		426.8		319.4		351.9
Foreign debt		10.6		12.2		12.2		14.6		9.8		10.9
Total interest payments		343.5		405.9		405.9		441.4		329.2		362.8
Subsidies:
Energy subsidies		140.4		134.0		208.9		212.0		102.5		148.2
Non-energy subsidies		101.7		72.9		74.7		86.5		61.9		57.7
Total subsidies		242.1		207.0		283.7		298.5		164.4		205.9
Grant expenditures		4.3		4.8		4.8		0.0		2.2		3.8
Social assistance⁽¹⁾		173.7		147.4		147.4		148.6		144.8		153.2
Other expenditures		79.7		214.0		494.4		329.3		27.7		288.5

Total central Government expenditures		2,000.7		1,944.5		2,301.6		2,246.5		1,599.3		1,882.6

Transfers to Regions and Rural Fund
Transfer to Regions
Balanced funds:
General transfer funds:
Revenue sharing funds		117.2		105.3		140.4		136.3		81.6		117.7
General allocation funds		377.8		378.0		378.0		396.0		368.8		369.0
Total general transfer funds		494.9		483.3		518.4		532.3		450.5		486.8
Specific allocation funds:
Physical special allocation fund		57.1		60.9		60.9		53.4		41.6		42.5
Non-physical special allocation fund		127.6		128.7		128.7		130.3		123.1		111.9
Grants to Regions⁽²⁾		—		—		—		2.1		—		—
Total specific allocation funds		184.6		189.6		189.6		185.8		164.7		154.4
Total balanced funds		679.6		672.9		708.0		718.1		615.2		641.2
Regional incentive fund		13.5		7.0		7.0		—		13.5		5.5
Specific autonomy funds⁽³⁾		19.5		20.4		20.4		17.2		16.6		20.4
Specific Fund for Special Region of Yogyakarta		1.3		1.3		1.3		1.4		1.3		1.3
Fiscal Incentives⁽⁴⁾		—		—		—		8.0		—		—
Total Transfer to Regions		713.9		701.6		736.8		744.7		646.5		668.4
Rural Fund		71.9		68.0		68.0		70.0		64.5		63.3

Total transfers to regions and Rural Fund		785.7		769.6		804.8		814.7		711.0		731.7

Total Government expenditures		2,786.4		2,714.2		3,106.4		3,061.2		2,310.4		2,614.4

E-35

Source: Ministry of Finance.

^L	LKPP (Financial Report of Central Government/Audited).

Budget.

^R	Revised Budget.

^P	Preliminary.

⁽¹⁾	Consists of Social Assistance from Ministries/Agencies Spending and Social Assistance for Disaster Relief.

⁽²⁾	Starting in 2023, become part of the Transfer to the Regions.

⁽³⁾	Consists of specific autonomy fund for Aceh and Papua Provinces and additional infrastructure fund for Papua Provinces.

⁽⁴⁾	It is the Regional Incentive Fund before 2023.

Total Government expenditures in the eleven months ended November 30, 2022 reached Rp2,614.4 trillion or an increase of 13.2% from Rp2,310.4 trillion in the eleven months ended November 30, 2021. This is primarily driven by the realization of central Government expenditures which increased by 17.7% from Rp1,599.3 trillion to Rp1,882.6 trillion. The increase was driven by line ministries and non-line ministries’ expenditures realization, which, among other things, supported the handling of the impact of the Covid-19 pandemic and economic growth and protected the populace. Total transfers to regions and rural fund increased by 2.9% from Rp711.0 trillion to Rp731.7 trillion.

Fuel Prices and Subsidies

The table below sets forth the amount of subsidies for the periods indicated.

Year Ended December 31,

Eleven Months Ended
November 30,

2021^L

2022^B

2022^R

2023^B

2021

2022^P

(in trillions of Rupiah)

Subsidies:

Energy subsidies

140.4

134.0

208.9

212.0

102.5

148.2

Non-energy subsidies

101.7

72.9

74.7

86.5

61.9

57.7

Total subsidies

242.1

207.0

283.7

298.5

164.4

205.9

Source: Ministry of Finance.

^L	LKPP (Financial Report of Central Government/Audited).

Budget.

^R	Revised Budget.

^P	Preliminary.

E-36

Government Expenditure Allocation

The following table sets forth, by percentage, the allocation of central Government expenditures by function for the periods indicated.

Allocation of Central Government Expenditures by Function


	Year ended December 31,
	2021^L		2022^B		2022^R		2023^B

	Percentage
General public services		27.5		32.3		27.3		29.6
Defense		6.3		6.9		5.8		6.0
Public order and safety		7.9		9.1		7.7		8.1
Economic affairs		23.1		20.6		32.6		28.2
Environmental protection		0.7		0.7		0.6		0.6
Housing and community amenities		1.5		0.9		0.8		1.4
Health		10.6		7.2		5.3		4.3
Tourism and culture		0.2		0.2		0.2		0.2
Religion		0.5		0.5		0.5		0.5
Education⁽¹⁾		8.1		8.7		8.4		10.4
Social protection		13.6		12.9		10.9		10.7

Total		100.0		100.0		100.0		100.0

Source: Ministry of Finance.

^L	LKPP (Financial Report of Central Government/Audited).

Budget.

^R	Revised Budget.

⁽¹⁾	The amount set on the table is allocated at central Government expenditure. Total education budget in the budget 2023 is Rp612.2 trillion.

The table below sets forth certain Government budget expenditures for priority sectors for the periods indicated.


	Year Ended December 31,								Eleven Months Ended November 30,
	2021^L		2022^B		2022^R		2023^B		2021		2022^P

	(in trillions of Rupiah)
Education		479.5		542.8		621.3		612.2		460.5		439.2
Infrastructure		425.3		365.8		365.8		391.7		293.2		274.9
Energy Subsidy		140.4		134.0		208.9		212.0		102.5		148.2
Health		312.4		255.4		255.4		178.7		228.3		149.3

Source: Ministry of Finance

^L	LKPP (Financial Report of Central Government/Audited).

Budget.

^R	Revised Budget.

^P	Preliminary.

E-37

Deficit Financing

The following table sets forth, by amount, information on deficit financing for the periods indicated.

Deficit Financing


	Year ended December 31,												Eleven Months Ended November 30,
	2021^L			2022^B			2022^R			2023^B			2021			2022^P

	(in trillions of Rupiah)
Debt financing
Government securities (net)		877.5			991.3			961.4			712.9			670.4			504.3
Loans
Domestic loans (net)		0.9			1.8			1.8			0.7			(0.1	)		4.0
Foreign loans:
Gross drawings:
Program loan		41.6			28.7			28.7			29.5			13.1			46.2
Project loan		32.6			34.8			34.8			32.6			50.9			25.8
Total gross drawing		74.2			63.5			63.5			62.1			63.9			72.0
Amortization		(82.1	)		(83.0	)		(83.0	)		(79.4	)		(73.6	)		(70.1	)
Total foreign loan (net)		(7.9	)		(19.5	)		(19.5	)		(17.4	)		(9.7	)		1.9
Total loans (net)		(7.0	)		(17.7	)		(17.7	)		(16.6	)		(9.7	)		5.9

Total debt financing		870.5			973.6			943.7			696.3			660.7			510.2

Investment financing
Investment to SOEs		(71.2	)		(38.5	)		(38.5	)		(45.8	)		(36.9	)		(9.0	)
Investment to other institutions		(21.0	)		0.0			0.0			—			(15.0	)		0.0
Investment to public service agencies		(39.4	)		(52.8	)		(52.8	)		(53.9	)		(51.7	)		(52.8	)
Investment in financial organizations/institutions		(0.9	)		(0.9	)		(0.9	)		(1.5	)		0.0			0.0
Revenue of investment		—			—			0.0			—			0.4			8.8
Government’s Investments		(10.0	)		(19.1	)		(19.1	)		(19.5	)		(10.0	)		(19.8	)
Others investment financing		0.0			(71.0	)		(97.4	)		(49.5	)		0.0			0.0
Investment financing reserves		—			—			(21.5	)		(5.7	)		—			0.0

Total investment financing		(142.5	)		(182.3	)		(230.2	)		(176.0	)		(113.2	)		(72.8	)

Lending		1.9			0.6			0.6			5.3			2.9			2.9
Government guarantee		(2.7	)		(1.1	)		(1.1	)		(0.3	)		(2.7	)		(1.1	)
Other financing		144.4			77.3			127.3			72.8			56.8			0.6

Total financing (net)		871.7			868.0			840.2			598.2			604.5			439.9

Source: Ministry of Finance.

^L	LKPP (Financial Report of Central Government/Audited).

Budget.

^R	Revised Budget.

^P	Preliminary.

E-38

Public Debt

As of November 30, 2022, the central Government’s foreign debt-to-GDP ratio was 11.5%, with foreign debt to total debt ratio of 29.6%.

External Public Debt of the Republic

Outstanding External Public Debt of the Republic by Source⁽¹⁾


	As of December 31,			As of November 30,
	2021			2022^P

	(in billions of U.S. dollars)
Concessional Loans:
Multilateral creditors		32.8			32.4
Bilateral creditors		20.8			17.7
Commercial⁽²⁾		92.0			92.1
Total		145.5			142.2
Total external public debt of the Republic, as a percentage of GDP for the period indicated⁽³⁾		12.2	%		11.5	%

Source: Ministry of Finance

^P	Preliminary.

⁽¹⁾	Foreign currency values of outstanding external debt have been converted into U.S. dollars at the applicable BI middle exchange rates as of the respective dates indicated.

⁽²⁾	Includes securities (bonds and Sukuk) issued in international capital markets and commercial bank borrowings.

⁽³⁾	In calculating as a percentage of GDP, GDP in U.S. dollars has been converted from Rupiah into U.S. dollars at the applicable BI middle exchange rates as of the respective dates indicated.

As of November 30, 2022, 64.8% and 35.2% of the outstanding external public debt of the Republic are from commercial and concessional loans, respectively. The total outstanding external public debt of the Republic as of November 30, 2022 was U.S.$142.2 billion.

E-39

Sources of External Public Borrowing

The following table sets forth the outstanding amounts of international development assistance received by the Republic as of the dates indicated.

International Development Assistance⁽¹⁾⁽²⁾


	As of December 31,		As of November 30,
	2021		2022^P

	(in millions of U.S. dollars)
Bilateral loans		20,781.8		17,663.7
Multilateral loans:
International Monetary Fund		—		—
World Bank Group		19,091.2		18,928.9
Asian Development Bank		10,818.4		9,997.0
Islamic Development Bank		1,345.4		1,345.6
Nordic Investment Bank		8.1		6.6
European Investment Bank		—		—
International Fund for Agricultural Development		202.1		233.7
Asian Infrastructure Investment Bank		1,306.7		1,907.6
Multilateral Investment Guarantee Agency		—		—

Total multilateral loans		32,771.8		32,419.3

Total loans		53,553.6		50,083.0

Source: Ministry of Finance

^P	Preliminary.

⁽¹⁾	The term international development assistance includes any concessionary loans provided by international financial institutions or foreign governments, excluding grants.

⁽²⁾	Foreign currency values of international development assistance have been converted into U.S. dollars at the applicable BI middle exchange rates as of the respective dates indicated.

The following table sets forth the external public debt of the Republic by currency as of the dates indicated.

Outstanding External Public Debt of the Republic by Major Currency


	As of December 31, 2021				As of November 30, 2022^P
	(in millions of original currency)		(in millions of U.S. dollars)⁽¹⁾		(in millions of original currency)		(in millions of U.S. dollars)⁽¹⁾
U.S. dollars		99,263		99,263		102,572		102,572
Japanese yen		2,392,620		20,786		2,263,791		16,342
Euros		19,843		22,453		20,141		20,848
SDR		701		981		536		704
British pounds		1		1		0		0
Others		Multiple Currencies		2,036		Multiple Currencies		1,759
Total		N/A		145,521		N/A		142,226

Source: Ministry of Finance

^P	Preliminary.

⁽¹⁾	Calculated based on the applicable BI middle exchange rates as of the date indicated for each column.

E-40

As of November 30, 2022, 72.1%, 11.5%, 14.7% and 1.7% of the external public debt of the Republic was denominated in U.S. dollars, Japanese Yen, Euros and other currencies respectively.

The following table sets forth the external debt service requirements of the central Government for the years indicated.

External Debt Service Requirements of the Central Government


Period	Principal repayment		Interest repayment		Total

	(in billions of U.S. dollars)
2021^R		11.4		3.4		14.8
2022^*		11.9		4.3		16.2
2023^**		11.8		4.4		16.3
2024^**		11.7		4.2		15.8
2024^**		13.5		3.8		17.2

Source: Ministry of Finance

^R	Realization.

*	Calculated based on (i) actual principal and interest payments made from January 1, 2022 to November 30, 2022 and (ii) projected principal and interest payments to be made from December 1, 2022 to December 31, 2022 based on external debt outstanding as of November 30, 2022.

**	Projected based on external debt outstanding as of November 30, 2022.

External Debt of Bank Indonesia

As of December 31, 2021 and October 31, 2022, external debt of Bank Indonesia amounted to U.S.$9,030 million and U.S.$8,283 million, respectively, entirely comprising SDR allocation and currency and deposits, while commercial debt was nil as of each of the two dates. For calculation purposes, foreign currency values of outstanding external debt were converted into U.S. dollars at the applicable BI middle exchange rates as of the respective dates indicated.

The following table sets forth the external debt service requirements of Bank Indonesia for the years indicated.

External Debt Service Requirements of Bank Indonesia


Period	Principal repayment		Interest repayment		Total

	(in millions of U.S. dollars)
2020		0.0		19.15		19.15
2021^*		0.0		2.70		2.70
2022^*(1)		0.0		40.78		40.78

Source: Bank Indonesia

*	Projected based on external debt outstanding as of October 31, 2022.

⁽¹⁾	Foreign currency values of outstanding external debt have been converted into U.S. dollars at the applicable BI middle exchange rates as of October 31, 2022.

E-41

External Debt of State-Owned Enterprises

The following table sets forth the outstanding direct external debt of State-Owned Enterprises as of the dates indicated.

Outstanding Direct External Debt of State-Owned Enterprises⁽¹⁾


	As of December 31,		As of October 31,
	2021^P		2022^P

	(in millions of U.S. dollars)
Financial institutions:
Bank		9,280		8,592
Non-bank		2,895		2,104

Total financial institutions		12,175		10,696
Non-financial institutions		46,612		44,244

Total		58,786		54,940

Source: Bank Indonesia

^P	Preliminary.

⁽¹⁾	Foreign currency values of outstanding direct external debt have been converted into U.S. dollars at the applicable BI middle exchange rates as of the respective dates indicated.

Domestic Public Debt of the Central Government

The following table sets forth the outstanding domestic public debt of the central Government as of the dates indicated.


	As of December 31,		As of November 30,
	2021		2022^P

	(in trillions of Rupiah)
Total domestic public debt⁽¹⁾		4,836.2		5,315.3

Source: Ministry of Finance

^P	Preliminary.

⁽¹⁾	Excludes SBI, which are obligations of Bank Indonesia and not of the Government.

E-42

Domestic Debt Service Requirements of the Central Government

The following table sets forth the debt service requirements for the central Government for the years indicated.

Direct Domestic Debt Service Requirements of the Central Government


Period	Principal repayment and redemption		Interest repayment		Total

	(in trillions of Rupiah)
2021^R		382.3		299.2		681.5
2022*		317.5		310.8		628.4
2023*		400.1		318.0		718.0
2024*		474.2		289.4		763.6
2025**		452.9		262.5		715.4

Source: Ministry of Finance

^R	Realization.

*	Calculated based on (i) actual principal and interest payments made from January 1, 2022 to November 30, 2022 and (ii) projected principal and interest payments to be made from December 1, 2022 to December 31, 2022 based on domestic debt outstanding as of November 30, 2022.

**	Projected based on domestic debt outstanding as of November 30, 2022.

Contingent Liabilities from Government Guarantees

As of November 30, 2022, the Government had accumulated Rp5.8 trillion in the guarantee reserve fund account and the guarantee that the Government has provided to infrastructure projects includes:

•

full default risk guarantees relating to the PT Perusahaan Listrik Negara (“PT PLN”) loans for the construction of coal power plants with aggregate capacity of 10,000 MW and the associated transmission lines (‘Fast Track I’ program). Outstanding guarantees for this program amount to Rp5.5 trillion;

•

business viability guarantees to independent power producers on the ability of PT PLN to fulfill its financial obligations based on power purchase agreements related to the ‘Fast Track II’ program. The guarantee exposure for this program amounts to Rp60.9 trillion;

•

full default risk guarantees relating to the PT PLN loans for the construction of electricity infrastructure (35 GW program). Outstanding guarantees for this program amount to Rp95.3 trillion.

•

partial default risk guarantees for local government-owned water companies’ loans in connection with the Millennium Development Goals in water provision. Outstanding guarantees for this program amount to Rp33.2 billion;

•

co-guarantee scheme between the Government and the Indonesia Infrastructure Guarantee Fund (“IIGF”) to guarantee private-public partnership projects such as power plant projects (e.g. the Central Java steam power plant) and several section of toll road projects (e.g. Jakarta Cikampek II Elevated, Cileunyi — Sumedang — Dawunan, Krian — Legundi — Bunder — Manyar, Serang — Panimbang, Probolinggo — Banyuwangi, and Jakarta Cikampek II Selatan). The guarantee exposure for this program amounts to Rp97.2 trillion;

•

full default risk guarantees relating to PT Hutama Karya loans and bonds for the construction of Sumatera Toll Roads. Outstanding guarantees for this program amount to Rp43.4 trillion;

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•

guarantee for infrastructure financing through direct loans from international financial institutions to SOEs to finance infrastructure projects. Outstanding guarantees for this program amount to Rp35.5 trillion;

•

full default risk guarantee relating to the PT Kereta Api Indonesia (Persero) loans for the construction of the Light Rail Transit Jakarta-Bogor-Depok-Bekasi. Outstanding guarantees for this program amount to Rp13.7 trillion; and

•

guarantee for local infrastructure financing through PT SMI. Outstanding guarantees for this program amount to Rp3.0 trillion.

As of September 30, 2022, no claims from the foregoing guarantees had arisen.

Foreign Exchange and Reserves

Exchange Rates

The following table sets forth information on exchange rates between the Rupiah and the U.S. dollar for the periods indicated.

Exchange Rates


	End of Period		Average

	Rupiah per U.S. dollar
2017		13,568		13,385
2018		14,380		14,246
2019		13,883		14,139
2020		14,050		14,525
2021		14,253		14,296
2022^		15,588		14,851

Source: Bank Indonesia

^	As of December 21, 2022

As of December 21, 2022, the Rupiah depreciated by 8.56% to Rp15,588 per U.S. dollar from Rp14,253 per U.S. dollar as of December 31, 2021, and on average depreciated by 3.88% from Rp14,296 per U.S. dollar in 2021 to Rp14,851 per U.S. dollar in 2022 (up to December 21, 2022). Rupiah exchange rate movements remain under control despite continued global financial market uncertainty in response to external sector resilience and Bank Indonesia’s stabilization measures. Bank Indonesia continues to strengthen rupiah exchange rate stabilization policy in line with the currency’s fundamental value and market mechanisms through effective monetary operations and adequate market liquidity.

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International Reserves

The following table sets forth the Republic’s total official international reserves, expressed in (i) U.S. dollar equivalents and (ii) the number of months of imports and Government external debt repayments, in each case at the end of the periods indicated. These reserves consist of foreign exchange, gold, SDRs and a reserve position with the IMF. Indonesia complies with the IMF’s Special Data Dissemination Standard requirement on international reserves and foreign exchange currency liquidity.

Official International Reserves of the Republic⁽¹⁾


	As of December 31,		As of November 30,
	2021^P		2022^P

	(in millions of U.S. dollars, except for months)
Gold		4,595		4,435
SDRs		7,795		7,319
Reserve position with the IMF		1,110		1,042
Foreign exchange and others		131,405		121,199

Total		144,905		133,994

Total as number of months of imports and Government external debt repayments		7.8		5.8

Source: Bank Indonesia

^P	Preliminary.

⁽¹⁾	Converted into U.S. dollars at the applicable BI middle exchange rates as of the respective dates indicated.

As of November 30, 2022, foreign reserves recorded U.S.$134.0 billion, equivalent to 5.8 months of import coverage and government external debt service requirements. In addition, the coverage ratio is in excess of the recommended international adequacy ratio of three months imports.

Regional Swap Arrangements of the Republic

As of November 30, 2022, no drawdowns on existing bilateral and regional swap arrangements have been made.

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Debt-to-GDP Ratios

The following table sets forth the central Government’s debt-to-GDP ratio and debt service to GDP ratio as of the dates indicated.

Debt-to-GDP Ratios


	As of December 31, 2021^L		As of November 30, 2022^P

	(percentages, unless indicated otherwise)
Debt-to-GDP ratio		40.7		38.7
Debt service to GDP ratio		5.3		4.3
Total public debt of the central Government (in billions of U.S.$)⁽¹⁾		484.1		479.9
—% in Loans		11.9		11.3
—% in Bonds		88.1		88.7

Source: Ministry of Finance, Bank Indonesia

^L	LKPP (Financial Report of Central Government/Audited).

^P	Preliminary.

⁽¹⁾	Outstanding foreign currency debt was converted to U.S. dollars using the BI middle exchange rate as of each period indicated in the table.

As of November 30, 2022, the central Government’s debt-to-GDP ratio was 38.7%, with U.S.$479.9 billion of total public debt of the central Government, 11.3% of which are in loans and 88.7% are in bonds.

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