GOVERNMENT

SECURITIES
MANAGEMENT
June 27, 2023
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BUDGET FINANCING
STRATEGY &
REALIZATION
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 2023 BUDGET FINANCING
Increasing productivity for an inclusive and sustainable economic transformation
Macroeconomic Assumption for 2023 Budget 2023 Development Target
Description
Budget 2023
(IDR Trillion)
A. State Revenue 2,463.0
Economic Growth ICP
1. Tax Revenue 2,021.2 5.3% US$90/barrel Unemployment rate Human Development Index
5.3 – 6.0 73.31 – 73.49
2. Non-tax Revenue 441.4

3. Grants 0.4
Inflation Oil Lifting
B. State Expenditure 3,061.2 3.6% 660 thousand
barrel/day Gini Ratio Poverty Level
1. Central Government Expenditure 2,246.5 0.375 – 0.378 7.5 – 8.5

2. Regional Transfer & Village Fund 814.7

Exchange Rate
C. Primary Balance (156.7) IDR14,800/USD
Gas Lifting
1,100 thousand Peasant Exchnage Rate Fisherman Exchnage Rate
D. Surplus (Deficit) (598.2) barrel of oil 105 - 107 107 - 108
equivalent/day
% of GDP (2.84)
10Y T-Bonds Rate
E. Financing 598.2 7.90%

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 FISCAL POLICY FOCUS 2023

Human Resources Infrastructure Bureaucratic Reform Industrial Revitalization Green Economy

The 2023 State Budget supports consolidation to Strengthening the Role of the APBN and Continuing
maintain fiscal sustainability Quality Fiscal Consolidation

Revenue Mobilization

Quality Expenditure

Innovative Financing

Deficit (trillion rupiah)

Primary Balance (trillion rupiah)
Deficit of GDP (&)
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 2023 FINANCING NEEDS & SOURCES

Financing
Kebutuhan
Kebutuhan Needs
Pembiayaan
Pembiayaan Financing
Sumber
Sumber Sources
Pembiayaan
Pembiayaan

Budget Deficit Foreign Loan Foreign

Local Domestic
(2,84% GDP) Currency currency Loan
(15%-25%) (75%-85%)
Foreign
Domestic
Denominated
GS
Bonds

o Investment financing
Gross GS 2023
o Lending Matured
(Auction & non- T-Bills
o Liabilities auction) Issuance
o Other financing
o Matured debt Sukuk
30-36% GDS
70-64%

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 2023 FINANCING POLICIES
Our Debt financing policies encourage flexible and sustainable debt management to support economic transformation. Amidst
increasing global risks, fiscal pressures, and moderating domestic SBN demand, we will optimize non-debt financing sources
considering the high financing needs and choosing the right timing for issuance.

Management of prudent and sustainable debt financing by controlling debt

risk at a safe and credible level

General Prioritizing domestic sources of financing to increase financial independence

debt policy
Procurement of foreign debt as an effort to mitigate the crowding out effect.
direction
Flexibility in debt financing, both in terms of timing and composition, to
obtain the most favorable costs and risks for the government.

Utilizing cash loans within the framework of financing flexibility to ensure the
fulfillment of financing, while the choice of cash loan currency takes into
account cash requirements and debt portfolio management

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 2023 BUDGET FINANCING REALIZATION
The budget deficit is back below 3 percent and for the first time the tax target is above IDR2,000 tn
2022 2023
Account Real % of
(IDRtn) Growth Real a.o % of Growth
a.o 31 Perpres Budget
(%) 31 May Budget (%)
May 98/2022
State Revenue 1,070.1 47.2 47.3 2,463.6 1,209.3 49.1 13.0
Tax Revenue 1.069,9 47.4 51.3 2,021.2 948.7 46.9 12.2
Non Tax Revenue 224,2 46.5 33.7 441.4 260.5 59.0 16.2
State Expenditure 938.2 30.2 (0.8) 3,061.2 1,005.0 32.8 7.1
Central Government
Expenditure
653.9 28.4 1.0 2,246.5 714.7 31.8 9.3

Regional Transfer & Village

Funds
284.3 35.3 (4.6) 814.7 290.3 35.6 2.1

Primary Balance 298.6 (68.8) 542.8 (156.8) 390.5 (249.1) 30.8

Surplus (Deficit) 132.0 (15.7) 160.2 (598.2) 204.3 (34.2) 54.8
% to GDP 0.67 (2.84) 0.97
Financing*) 83.6 10.0 (73.1) 598.2 118.4 19.8 41.6
Source: Ministry of Finance.
*) including Budget Financing for Investment 7
 GS FINANCING REALIZATION 2023
(Trillion IDR)
Realization
(ao. Jun 27, 2023)
Government Securities (GS) Nett 174.44
Government Securities (GS) Gross 462.05
Government Debt Securities (GDS) 308.09
IDR Denominated GDS 249.32
- Coupon GDS 191.45
- Conventional T-Bills 28.80
- Private Placement (+ Voluntary Disclosure Program) 6.88
- Retail Bonds 22.18
Foreign Denominated Bonds 58.78
- SEC USD-EUR ( - Buyback LM) 46.77
- Samurai Bond 11.24
- SDG Bonds 0.00
- Valas Voluntary Disclosure Program 0.77
Sovereign Sharia Securities (Sukuk) 153.95
Domestic Sovereign Sharia Securitoes 153.95
- IFR/PBS/T-Bills Sukuk (Islamic Fixed Rate Bond/Project Based Sukuk 115.00
- Retail Sukuk 36.50
- Private Placement 2.46
Global Sukuk 0.00

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GOVERNMENT
SECURITIES
PERFORMANCE
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 PRIMARY MARKET PERFORMANCE 2022 – 2023
Government Securities (GS)
300 Incoming Bids Awarded Bids 6.00

2022 Avr Incoming Bids 2022 Avr Awarded Bids

Bid to Cover Ratio [RHS]
250 4.77 5.00
5.01

200 4.00 In 2023:

3.56
IDR32.25 tn
IDR12.46 tn
• average incoming bid =
per auction
3.11 per auction IDR43.00 tn/auction
150 2.73
2.62 2.60
2.78 3.00 • average awarded bid =
2.45 2.40
2.24 2.25 2.14 2.15
IDR14.58 tn/auction
1.96 2.02
100 1.81 1.78 2.00

50 1.00

- -

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 PRIMARY MARKET PERFORMANCE 2022 – 2023
Government Debt Securities (GDS)
200 Incoming Bids Awarded Bids 4.50
2022 Avr Incoming Bids 2022 Avr Awarded Bids
180 Bid to Cover Ratio [RHS]
4.13 4.00
3.92
160
3.50

140 IDR44.03 tn
3.25
3.10 per auction
3.00 In 2023:
120
IDR17.33 tn
per auction
• average incoming bid =
2.78 2.80
2.62 2.55 2.55
2.50 IDR51.76 tn/auction
2.50
100 2.37 • average awarded bid =
2.19 2.16 2.00
80 2.05 2.12 2.05 IDR18.35 tn/auction
1.78
1.50
60 1.58

1.00
40

20 0.50

- -

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 SECONDARY MARKET PERFORMANCE
Yields of Benchmark Series Average Daily Trading (IDR Trillion)
5Y 10Y 15Y 20Y Outright Repo Non BI Repo BI
8.0

7.5 138.2
139.7
125.3127.6
7.0 120.7 124.6
117.0
108.4 92.9
6.5 101.0 99.1

6.0 78.7 60.2

76.2
56.4
50.2 46.4
49.1
5.5
as of Jun 27, 2023
5.89 (5Y)
5.0
6.22 (10Y) 28.5 24.1
17.9 22.7 20.0 19.4 19.1
4.5
6.45 (15Y) 10.5 12.4 17.7 12.7 17.9 17.7
14.3 14.9 14.5 17.2 16.5
6.55 (20Y)
23.1 18.7 24.5 19.1 25.4 17.3 17.0 17.7 17.3 14.0 14.6 14.0 21.2 19.9 19.8 27.5 25.1 26.5
4.0
Jun-22

Dec-22
Jan-22
Feb-22

May-22

Jul-22

Jan-23
Feb-23

May-23
Dec-21

Mar-22
Apr-22

Sep-22
Oct-22

Mar-23
Apr-23
Aug-22

Nov-22
Peers 10y Govt Bonds’ Yield Foreign Ownership V. 10Y Yield Movement
Latest Foreign Ownership [RHS] 10Y Yield

LC Y 10 Y ea r Gover nment Yield Prev Day Change YTD Change 8.0 950

B onds (a .o Jun 27, 2023) (in bps) (in bps)

(%) 7.5 900

CN 2.66 ▼ 1.5 ▼ 18.3

HK 3.6 ▼ 0.5 ▼ 4.7 7.0 850

ID 6.26 0.0 ▼ 67.9

6.5 800
JP 0.39 ▲ 0.2 ▼ 3.1
KR 3.63 ▲ 2.4 ▼ 10.1 6.0 750

MY 3.81 0.0 ▼ 28.5

PH 6.23 ▼ 0.3 ▼ 75.6 5.5 700

SG 3.02 0.0 ▼ 6.7

5.0 650
TH 2.57 ▲ 0.1 ▼ 6.3 Jan-22 Mar-22 May-22 Jun-22 Aug-22 Oct-22 Nov-22 Jan-23 Mar-23 Apr-23 Jun-23

VN 2.59 ▲ 6.9 ▼ 220.5

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 OWNERSHIP OF TRADABLE DOMESTIC GS
Description Dec-19 Dec-20 Dec-21 Dec-22 Jun-23
Banks* 581.37 21.12% 1,375.57 35.54% 1,591.12 34.01% 1,697.43 31.97% 1,690.91 30.98% Portion of foreign ownership
70.67
Govt Institutions (Bank Indonesia**) 262.49 9.54% 454.36 11.74% 801.46 17.13% 1,020.02 19.21% 960.92 17.60% in the mid & long term sector
%
Bank Indonesia (gross) 273.21 9.93% 874.88 22.60% 1,220.73 26.09% 1,453.58 27.38% 1,392.91 25.52% (≥ 5 years)
GS used for Monetary Operation 10.72 0.39% 420.51 10.86% 419.27 8.96% 433.57 8.17% 431.99 7.91%
IDR on January 24, 2020,
Non-Banks 1,908.88 69.34% 2,040.83 52.72% 2,286.40 48.87% 2,591.98 48.82% 2,807.00 51.42%
1,092.02 foreign holders reach a record
Mutual Funds 130.86 4.75% 161.32 4.17% 157.93 3.38% 145.82 2.75% 172.94 3.17% T
high in nominal terms
Insurance Company and Pension Fund 471.67 17.13% 542.82 14.02% 655.24 14.00% 873.03 16.44% 945.59 17.32%
Foreign Holders 1,061.86 38.57% 973.91 25.16% 891.34 19.05% 762.19 14.36% 842.62 15.44%
Foreign Govt's & Central Banks 194.45 7.06% 178.31 4.61% 233.45 4.99% 203.11 3.83% 214.95 3.94%
Individual 81.17 2.95% 131.21 3.39% 221.41 4.73% 344.30 6.48% 361.47 6.62%
Others 163.32 5.93% 231.57 5.98% 360.47 7.70% 466.65 8.79% 484.39 8.87%
Total 2,752.74 100% 3,870.76 100% 4,678.98 100% 5,309.43 100% 5,434.30 100%

1) Non Resident consists of Private Bank, Fund/Asset Manager, Securities Company, Insurance
Company, and Pension Fund.
2) Others such as Securities Company, Corporation, and Foundation.
*) Including the Government Securities used in monetary operation with Bank Indonesia.
**) net, excluding Government Securities used in monetary operation with Banks. Non-Banks,
Govt 51.42%
Institutions,
17.60%
Banks,
30.98%
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 FOREIGN INVESTOR ACTIVITY
Foreign investor mostly dominated by high quality long term investor
Foreign Ownership - Proportion by Tenor Monthly Net Buyer (Seller) - Non Resident

100 Net Inflows [LHS] Net Inflows Over Total Foreign Holdings [RHS]
92.43 12%
85.76
20.06%22.36% 81.60 80.43 10%
24.2% 24.27%24.19%24.80%25.60%26.62%23.72%23.63%23.81% 74.96
29.6% 29.8% 30.0% 27.89% 28.4% 26.9% 27.1% 80
67.39
8%
60
6%
40
4%
39.5%39.55%40.08%39.83%39.15% 48.51% 19.86 23.7025.26
38.52%34.8% 36.2% 36.9% 38.40%42.62%44.42% 48.32%
38.4% 37.8% 36.7% 48.16% 20 13.41 13.20 14.66 2%
9.35 8.27
0%
0
21.8%22.1% 22.3% 22.8%22.33%22.17%21.39%20.93% (7.14) (4.06) -2%
20.56%20.90%
23.8% 23.1% 18.7%19.87% 20.25% 24.58% (20) (15.92)
(11.53) (12.51)
(15.51)
18.92% 18.75% (20.00) (18.67) (20.43) (17.02)
18.97%18.82%17.57% -4%
17.03%16.56%16.09%15.65%15.24% (27.11)
14.31%13.90%14.27%14.36%15.10%14.79%14.89%14.86%15.26%15.44% (40) (30.81) (32.12)(28.98)(29.26)
-6%
10.3%10.14%10.2% 9.9% 8.7% 8.6% 9.29% 9.15% 9.04% 8.76% 8.23% 8.04% 3.73% (48.35)
5.1% 3.31% 1.08% 5.51%
5.3% 7.97% (60) -8%
2.9% 4.1% 4.3% 3.59% 4.8% 4.9% 5.0% 5.0% 4.57%4.41% 4.95% 5.56% 6.19% 4.72% 5.80%5.78% 5.07%

0-1 >1-2 >2-5 >5-10 >10 % Foreign Ownership of Total

14
 REPUBLIC OF INDONESIA USD3 BN GLOBAL
BONDS ISSUANCE
Issuer Republic of Indonesia Transaction Highlight
• The first Emerging Asian sovereign issuer in 2023 and marks the Republic’s
Baa2 Moody’s (Stable) BBB S&P (Negative)
Issuer Rating thirteenth successful SEC-registered US$ transaction since 2018.
BBB Fitch (Stable) • A low new issuance concession for the transaction, which was also one of the
Format SEC-Registered Notes Offering lowest amongst the transactions launched on the same day

Pricing Date January 5, 2023 Investor Breakdown by Region

Settlement
January 11, 2023
Date
Issue Size USD3 bn
Tenor 5year 10year 30year
Maturity January 11, 2028 January 11, 2033 January 11, 2053
Tranche Size USD1,0 bn USD1,25 bn USD750 milion
Coupon (p.a.) 4.550% 4.850% 5.650%
Investor Breakdown by Investor Type
Price 98.900% 98.061% 98.678%
Yield (p.a.) 4.800% 5.100% 5.750%
BofA Securities, DBS Bank Ltd., HSBC, Mandiri Securities and Standard
JLM
Chartered Bank
Listing Singapore, Frankfurt Stock Exchange
Use of Net proceeds from the sale of the Bonds will be used for the general
Proceeds purposes of the Republic
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 REPUBLIC OF INDONESIA JPY104,8 BN
SAMURAI BONDS ISSUANCE
RIJPY0530 RIJPY0533
Series RIJPY0526B RIJPY0528B
(Blue SB) (Blue SB)
Investor breakdown by Investor Type
Tenor
3 Years 5 Years 7 Years 10 Years Central Regional
Cooperatives; Cooperatives; Regional Banks;
Maturity Date May 26, 2026 May 26, 2028 May 24, 2030 May 26, 2033 Public Fund; 4,80% 1,00% 0,50%
5,90%
Pricing Date 19 Mei 2023
Asset Managers; Offshore
Settlement 9,40% Investors;
26 Mei 2023 27,90%
Date

Size JPY46.9 Bio JPY37.2 Bio JPY14.7 Bio JPY6 Bio City Banks;
9,50%
Yield/
0,74% 0,98% 1,20% 1,43%
Coupon
Lifers;
Transaction Highlight 25,30%
Others;
• The Republic becomes the first Sovereign Blue Bonds issuer that publicly 15,70%
offered in accordance with ICMA principles.
• This issuance demonstrates the government's commitment to sustainable
financing, particularly for the achievement of the Sustainable Development
Goals (SDGs), and represents a major milestone for blue financing.
• The Republic successfully achieved its objective of marking lower yield
levels across tranches despite a significant rise in underlying interest rates
compared to the previous year’s transaction.
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 SOLID POLICY COORDINATION IN MANAGING
FINANCIAL MARKETS VOLATILITY
Gov’t Securities Crisis Management Protocol (CMP)
The enactment of Law No. 9/2016 regarding Prevention and Mitigation of
Indicators:
Financial System Crises as a legal foundation for the government to serves at ○ Yield of benchmark series
the time of financial crisis in the form of Financial System Stability ○ Exchange rate
○ Jakarta Composite Index
Committee (KSSK)
○ Foreign ownership in government securities
Policies to address the crisis at every level :
KSSK members: the Ministry of Finance, Bank Indonesia, the Financial ○ Repurchase the government securities at secondary market
Services Authority, and the Deposit Insurance Corporation ○ Postpone or stop the issuance
Bond Stabilization Framework
Most important provisions stipulated in the Law: First Line of Defense
• Financial system stability monitoring and maintenance by KSSK members • Buyback fund at DG of Budget Financing and
based on crisis management protocol of each member; Risk Management
• Prevention of financial system crisis, including the mitigation of State’s Budget
• Investment fund at Public Service Agency (BLU)
systemically important bank’s liquidity and solvency problems; (min. level Normal Aware)
• Recovery Plan for Systemically Important Banks
• Bank Restructuring Program State Owned Enterprises
• Related SOEs (min. level Normal Aware)
(BUMN)’s Budget

Gov’t Securities CMP Level State Owned Enterprises

• Related SOEs (min. level Normal Aware)
(BUMN)’s Budget
First Line of Defense
NORMAL NORMAL SUSPECTED • State General Treasury Account (Rekening KUN)
NORMAL
AWARE ALERT CRISIS (min. level Normal Alert) 17
State’s Budget
• Accumulated cash surplus (SAL) (min. Level
Suspected Crisis)
THANK
YOU
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