Republic of Indonesia Successfully Prices JPY100 billion 5-tranche Samurai Bonds

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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 PRESS RELEASE Republic of Indonesia successfully prices JPY100 billion 5-tranche Samurai Bonds Jakarta/Tokyo, On 2 July 2020 – the Republic of Indonesia (“RoI”) tapped Samurai bond market which has been relatively quiet due to Covid-19 market disruption. Despite the uncertainties surrounding pandemic situation and its macroeconomic impact, RoI successfully raised JPY 100 billion consisting of 3year, 5-year, 7-year, 10-year, and 20-year fixed-rate tranches. The Samurai bonds were priced this morning with the closing date set on 8 July 2020. The Joint Lead Managers for the transaction are Daiwa Securities Co. Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Nomura Securities Co., Ltd., and SMBC Nikko Securities Inc. Series RIJPY0723 Bond Ratings Tenor Issue size Coupon RIJPY0725 RIJPY0740 3-year 5-year 7-year 10-year 20-year JPY50.7bn JPY24.3bn JPY10.1bn JPY13.4bn JPY1.5bn 1.13% 1.35% 1.48% 1.59% 1.80%* YSO+145 n/a 8 July 2030 6 July 2040 100% YSO+110 YSO+130 YSO+140 Pricing Date 2 July 2020 Settlement Date 8 July 2020 Maturity Date RIJPY0730 Baa2 (Moody's) / BBB (S&P) / BBB (Fitch) Price Re-offer Spread over Yen Swap Offer (YSO) RIJPY0727 7 July 2023 8 July 2025 8 July 2027 (*Marketing for 20yr tranche was conducted in coupon term basis) The funds raised will be used to finance the budget deficit (i.e. general purposes of RoI, including to fund its Covid-19 relief and recovery efforts). With outbreak of the Covid-19 throughout North America and Europe since February, following earlier spread in Asia regions, global stock markets crushed in record drops and risk-premium hiked instantly. Global economy had to bear significant damage through major city lockdowns or restriction orders in business activities to combat the pandemic. Since last February, Samurai bond market has not seen any issuance during March and April until around the end of May. RoI’s transaction became the first Sovereign JPY issuance in 2020 and the first issue from Asian after the pandemic declaration. The transaction has built momentum and confidence to the market which would potentially lead to more supplies to the JPY market.
2. In terms of Official Marketing process , RoI announced its commencement of the official marketing on its new Samurai bond on Monday, 29 June 2020. Initial pricing guidance was set at 3yr at YSO+110-120 / 5yr at YSO+130-140 / 7yr at YSO+140-150 / 10yr at YSO+145-155 / 20yr at 1.80-1.90% (coupon rate marketing). Over the three days of marketing, on the back of solid demand from Japanese as well as from the overseas investors, RoI managed to narrow down the final guidance to the tightest end of the initial guidance. Considering those favorable factors and conducive market condition, as targeted, RoI decided to print its benchmark size of JPY 100 billion, which has been consistent since RoI made debut on public offering Samurai bonds market. RoI’s achievements of successful pricing of benchmark sized transaction while significantly reducing average premium over its US dollar secondary curve across tenor, contributed to encourage the market and proved strong presence of RoI as a leading Samurai bond issuer. Flexibly adapted to the situation in which investors switched to working from home, RoI conducted Nondeal roadshows in the form of Net-roadshow and Group Call where Investors could participate via telephone and access the presentation material online. RoI provided macroeconomic updates as well as comprehensive coverage on its policies and actions made to counter the Covid-19 impact which was the topics Investors were mostly interested in. Again this year, the issuance attracted interests and orders from both existing and new investors and both from Japan and from overseas out of Japan. Over 10 accounts newly or as first time in a while participated in the transaction. At the same time, RoI successfully issued as long as 20 year tenor, and the total volume of long-tenured tranche (7 year above) reached JPY 25bn which is higher than that of last year transaction. The bonds were placed across a wide spectrum of investors. The distribution stats across the tenors resulted as city banks (18.6%); life insurer (7.0%), property insurers (1.6%), asset managers (29.1%), pension fund (2.5%), Shinkin banks/regional banks (6.7%), and others (34.5%). Further Information: Directorate of Government Debt Securities, Directorate General of Budget Financing and Risk Management, Ministry of Finance of RI Email: surat.utang.negara@kemenkeu.go.id Phone. (021) 3810175 Fax. (021) 3846516