Emerging Markets Rates and Currencies Handbook

Indonesia (IDR - Indonesian Rupiah) Citi in Indonesia Citibank, N.A. Indonesia (“Citi Indonesia”) is a fully- owned subsidiary of Citigroup, Inc. which has been in Indonesia since 1968 and is one of the country’s largest foreign banks. We operate 10 branches in six major cities in Indonesia — Jakarta, Bandung, Surabaya, Semarang, Medan and Denpasar. Citi Indonesia also has one of the largest consumer transaction networks with 33,000 payment points and one of the largest corporate distribution networks with 4,800 locations in 34 provinces. Citi Indonesia is part of the ATM Bersama network with more than 70,000 ATM terminals throughout Indonesia. Market Overview The Rupiah (“Rp” or “IDR”) is the official currency of Indonesia. Bank Indonesia (BI), the central bank of the Republic of Indonesia, operates a managed floating currency regime. IDR is not allowed to be transferred offshore. The Indonesian Rupiah was first issued on 3 October 1946, a year after the Independence Proclamation of the Republic in 17 August 1945. With the highest bank note token at 100,000 Rupiah, there have been plans to redenominate the currency by truncating the last three zero digits (dividing by 1000). Crude palm oil, rubber, minerals and garments are Indonesia’s main export, while the country is now a net importer of oil. Trade, capital markets and equity markets are the main drivers for FX volume in Indonesia with foreign ownership of around 40% and 60% in capital and listed equities in the stock exchange respectively. To achieve its objective on stability of IDR, Bank Indonesia (BI) performs monetary operation framework by implementing BI-7 Day Reverse Repo Rate. The BI 7-day Repo Rate is the instrument used as policy rate to influence the interest rates in the money market, banking, and real sectors. BI has IndONIA for overnight tenor and JIBOR for tenors over overnight lending as money market benchmark rates. They can be used by market players as a reference such as setting loan interest 24