The Republic of Indonesia Issues US4 Billion Triple Tranche with SEC Registered Standalone Format

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1. MINISTRY OF FINANCE OF THE REPUBLIC OF INDONESIA DIRECTORATE GENERAL OF BUDGET FINANCING AND RISK MANAGEMENT FRANS SEDA BUILDING 2ND FLOOR , JALAN DR. WAHIDIN RAYA NO. 1, JAKARTA 10710 TELEPHONE 021 – 3500841; FAX 021 – 34834635; WEBSITE www.djppr.kemenkeu.go.id NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA The Republic of Indonesia issues US$4 billion Triple-Tranche 5, 10 and 30 years with SEC Registered Standalone Format Tuesday, December 5, 2017 The Republic of Indonesia (the “Republic”) successfully accessed the U.S. dollar bond markets in SECRegistered format for the first time in more than 20 years, in a transaction comprising US$1 Billion 5-year, US$1.25 Billion 10-year and US$1.75 Billion 30-year Senior Unsecured Fixed Rated Notes (the ”Notes”), raising a total of US$4 billion. The Notes are rated Baa3 by Moody’s, BBB- by Standard & Poor’s, and BBBby Fitch. The 5-year, 10-year and 30-year tranches priced at a coupon of 2.95%, 3.50% and 4.35% and a yield of 3.00%, 3.55% and 4.40%, respectively. The maturity dates are January 11, 2023, January 11, 2028 and January 11, 2048. The transaction marks the first issuance of the Republic’s bonds under the SEC-Registered format after the enactment of Law No.24 of 2002 on Government Debt Securities. As one of the most frequent issuers in the Asia G3 bond markets, the SEC-Registered market enables the Republic to further diversify and enlarge its investor base, further enhancing the reputation of the Republic. This transaction also paves the way for the Republic to set up an SEC-Registered Shelf for efficient future access to the market. The Notes are rated investment grade by all three rating agencies following the upgrade to BBB- by Standard & Poor’s earlier this year, and the Republic has taken advantage of the positive investor sentiment to pre-fund a significant portion of its 2018 budget requirements. By announcing and pricing the deal in the first week of December, the Republic was able to access the markets ahead of key market events and potential US interest rate hikes. The 5-year, 10-year and 30-year tranches priced at the tight end of final price guidance and with a negative new issue premium across all three tranches. The issuance resets the Indonesian yield curve whilst diversifying the investor base with the new SEC-registered format. Additionally, the 3.00% yield on the 5-year and the 4.40% yield on the 30-year coupons are the lowest ever achieved in those tenors by the Republic of Indonesia while the US$ 4 billion issue size matches its January 2014 and January 2015 issues as the largest issuances done. The final orderbook showed well-diversified demand across regions and investor types with 120, 129 and 153 accounts participating in the 5-year, 10-year and 30-year, respectively. The 5-year tranche was allocated 40% to the U.S., 25% to Europe, 21% to Asia (ex-Indonesia) and 14% to Indonesia. By investor type, 54% was allocated to asset managers, 26% to banks, 10% to pension funds and insurers, 8% to sovereign wealth funds/central banks and the remaining 2% to private banks. The 10-year tranche was allocated 48% to the U.S., 22% to Europe, 20% to Asia (ex-Indonesia) and 10% to Indonesia. By investor type, 47% was allocated to asset managers, 32% to banks, 19% to pension funds and insurers, and 2% to sovereign wealth funds/central banks. The 30-year tranche was allocated 65% to the U.S., 12% to Europe, 22% to Asia (ex-Indonesia) and 1% to Indonesia. By investor type, 59% was allocated to asset managers, 27% to pension funds and insurers, 10% to banks, and 4% to sovereign wealth funds/central banks. The Notes will settle on December 11, 2017 and are listed on the Singapore Stock Exchange and Frankfurt Stock Exchange. ANZ, Citigroup, Deutsche Bank, Goldman Sachs (Singapore) Pte and Mandiri Securities acted as Joint Bookrunners for the transaction, while PT Bahana Sekuritas, PT Danareksa Sekuritas and PT Trimegah Sekuritas Indonesia Tbk. acted as Co-Managers.