MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA COPY

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1 MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA COPY REGULATION OF THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA NUMBER 46/PMK.08/2016 REGARDING AMENDMENT TO REGULATION OF THE MINISTER OF FINANCE NUMBER 238/PMK.08/2014 REGARDING SALES OF GOVERNMENT BONDS IN PRIMARY MARKET DENOMINATED IN YEN IN JAPAN BY THE GRACE OF GOD ALMIGHTY THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA, Considering : a. whereas for the sales of Government Bonds in Primary Market Denominated in Yen in Japan, the Minister of Finance has stipulated the Regulation of the Minister of Finance Number 238/PMK.08/2014; b. whereas in accordance with the evaluation result of the implementation of the Regulation of the Minister of Finance Number 238/PMK.08/2014 as referred to in letter a, and for better administration of Government Bonds in Foreign Currency in international markets and to expand the basis of investors in Government Bonds, it is necessary to regulate provisions regarding the sales of Government Bonds in primary market denominated in Yen in Japan; c. whereas based on the considerations as set forth in letters a and b, it is necessary to stipulate a Regulation of the Minister of Finance regarding Amendment to Regulation of the Minister of

2 - 2 - Finance Number 238/PMK.08/2014 Regarding Sales of Government Bonds in Primary Market Denominated in Yen in Japan; In view of : 1. Law Number 24 of 2002 regarding Government Bonds (Supplement Number 4236 to State Gazette of the Republic of Indonesia Number 110 of 2002); 2. Presidential Regulation Number 54 of 2010 regarding Procurement of Government Goods/Services as amended for several times and the latest by Presidential Regulation Number 4 of 2015 (State Gazette of the Republic of Indonesia Number 5 of 2015); 3. Regulation of the Minister of Finance Number 238/PMK.08/2014 regarding Sales of Government Bonds in Primary Market Denominated in Yen in Japan; BE IT HEREBY RESOLVED: To stipulate : REGULATION OF THE MINISTER OF FINANCE REGARDING AMENDMENT TO REGULATION OF THE MINISTER OF FINANCE NUMBER 238/PMK.08/2014 REGARDING SALES OF GOVERNMENT BONDS IN PRIMARY MARKET DENOMINATED IN YEN IN JAPAN. Article I Several provisions in Regulation of the Minister of Finance Number 238/PMK.08/2014 regarding Sales of Government Bonds in Primary Market Denominated in Yen in Japan are amended as follows: 1. Provisions of Article 1 are amended so as to read as follows:

3 - 3 - Article 1 As intended herein, the following terms shall have the corresponding meaning as referred to hereunder: 1. Government Bond (Surat Utang Negara - SUN), hereinafter referred to as Government Bond, shall mean securities in the form of acknowledgment of indebtedness in rupiah and foreign currency of which the payment of the interest and principal is guaranteed by the State of the Republic of Indonesia during their respective validity period, which shall consist of Treasury Bill and State Debt Securities. 2. Government Bond Denominated in Yen shall mean Government Bond issued in primary market denominated in Yen in Japan. 3. Sales of Government Bond Denominated in Yen shall mean the activity of the sales of Government Bond Denominated in Yen in accordance with the financial market regulations prevailing in Japan. 4. Person shall mean any Indonesian or foreign individual, corporation, joint venture, association, or organized group, wherever they reside. 5. Investment Bank shall mean a financial institution authorized by the capital market authority/financial institution and which may act as Underwriter, Broker Dealer, and/or Investment Manager in Japan. 6. Private Placement shall mean the activity of the sales of Government Bond Denominated in Yen to a certain investor through a Selling Agent in compliance with the terms and conditions as stipulated in the agreement.

4 Bookbuilding shall mean the activity of offering the Sales of Government Bond Denominated in Yen to a group of Persons from whom subscriptions are solicited by the Selling Agent within the specified offering period. 8. Panel of Prospective Selling Agents, hereinafter referred to as Panel, shall mean a number of Investment Banks which have passed the selection for the performance of the Sales of Government Bond Denominated in Yen. 9. Selling Agent shall mean Investment Bank selected from the Panel to carry out the Sales of Government Bond Denominated in Yen. 10. Director General of Debt and Risk Management, hereinafter referred to as Director General, shall mean the person responsible for echelon I units of the Ministry of Finance in charge of financing and risk management affairs. 11. Proxy of Budget User (Kuasa Pengguna Anggaran - KPA), hereinafter referred to as Proxy of Budget User shall mean an official appointed by budget user to use the budget of the ministry/institution/regional work unit. 12. Commitment-Maker Officer for the Sales of Government Bond Denominated in Yen, hereinafter referred to as Commitment- Maker Officer, shall mean an official responsible for the implementation of the procurement of Selling Agent and/or legal consultant services. 13. Offering Memorandum shall mean written information regarding the offering of Government Bond Denominated in Yen to prospective investors. 14. Allotment shall mean the number of Government Bonds Denominated in Yen allocated to each of prospective investors in proportion to the proceeds from the Sales of Government Bond Denominated in Yen.

5 Settlement shall mean the settlement of the Government Bond Denominated in Yen transaction consisting of fund settlement and securities settlements over Government Bonds Denominated in Yen. 16. Business Day shall mean a day on which the appointed clearing agency are open for clearing transactions in Japan. 2. Provisions of Article 21 are amended so as to read as follows: Article 21 (1) Legal consultant shall be appointed by the Proxy of Budget User by virtue of an appointment letter executed by the Commitment- Maker Officer. (2) Appointment of legal consultant as referred to in paragraph (1) shall be followed up with a work agreement between Commitment-Maker Officer and the legal consultant. (3) Work Agreement as referred to in paragraph (1) shall be effective for 1 (one) year for all activities of the Sales of Government Bond Denominated in Yen during the said year. 3. Provisions of Article 24 are amended so as to read as follows: Article 24 (1) Subscription for Government Bonds Denominated in Yen by means of Private Placement shall be carried out by the Panel member by submitting a bid to the Minister of Finance. (2) Bid as referred to in paragraph (1) shall be made with the following conditions: a. the amount of bid shall be no less than 10,000,000, (ten billion Japanese Yen); b. the bid shall be addressed to the Minister of Finance, in this case, the Director General with a copy to the Director of Government Bond, substantially in the form set out in

6 - 6 - Appendix I to Regulation of the Minister of Finance Number 238/PMK.08/2014 regarding Sales of Government Bonds in Primary Market Denominated in Yen in Japan; c. the bid shall contain at least: 1) type of Government Bond (State Debt Securities and/or Treasury Bill); 2) status of Government Bond (tradable or nontradable); 3) volume; 4) maturity date; 5) coupon or without coupon; 6) yield, spread against reference rate, or price; and 7) Settlement date. (3) Procedures for the Sales of Government Bond Denominated in Yen by means of Private Placement on the initiative of the Panel member shall be as set out in the Appendix which forms an inseparable part hereof. 4. Article 37 is deleted. 5. Provision of Article 38 is amended so as to read as follows: Article 38 Documents of the Sale of Government Bond Denominated in Yen shall consist of: a. agreement with Selling Agent; b. agreement with legal consultant; c. Offering Memorandum; and/or

7 - 7 - d. other required documents in accordance with the method used for the Sales of Government Bond Denominated in Yen. 6. Provision of Article 41 is amended so as to read as follows: Article 41 Technical mechanism for the recording of ownership, clearing and Settlement, as well as the paying agent for Government Bond interest and principal shall be carried out in compliance with the generally acceptable practices in the financial market of Japan. 7. Provision of Article 42 is amended so as to read as follows: Article 42 All proceeds from the Sale of Government Bond Denominated in Yen shall be recorded in the State Budget Revenue and Expenditure. 8. Appendix II to the Regulation of the Minister of Finance Number 238/PMK.08/2014 regarding Sales of Government Bonds in Primary Market Denominated in Yen in Japan is amended so as to read as set out in the Appendix which forms an inseparable part hereof. Article II 1. Upon the enactment of this Ministerial Regulation, the phrase Directorate General of Debt Management shall then mean Directorate General of Debt and Risk Management. 2. This Ministerial Regulation shall come into effect as of the date of its promulgation.

8 For public cognizance, this Ministerial Regulation shall be announced by publishing it in the State Gazette of the Republic of Indonesia. Enacted in Jakarta on March 22, 2016 MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA, Signed. BAMBANG P.S. BRODJONEGORO Promulgated in Jakarta on March 23, 2016 DIRECTOR GENERAL OF LAWS AND REGULATIONS MINISTER OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA, Signed. WIDODO EKATJAHJANA STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 449 OF 2016 Certified true copy Head of General Bureau on his behalf Head of Administration Dept. of the Ministry Signed and sealed ARIF BINTARTO YUWONO NIP

9 - 9 - APPENDIX REGULATION OF THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA NUMBER 46/PMK.08/2016 REGARDING AMENDMENT TO REGULATION OF THE MINISTER OF FINANCE NUMBER 238/PMK.08/2014 REGARDING SALES OF GOVERNMENT BONDS IN PRIMARY MARKET DENOMINATED IN YEN IN JAPAN PROCEDURES FOR THE IMPLEMENTATION OF THE SALES OF GOVERNMENT BOND DENOMINATED IN YEN BY MEANS OF PRIVATE PLACEMENT ON THE INITIATIVE OF THE PANEL MEMBER 1. Panel member shall submit a bid to subscribe for Government Bond Denominated in Yen by means of Private Placement to the Minister of Finance, in this case, Director General with a copy to the Director of Government Bond on any Business Day, from up to West Indonesia Time. 2. Directorate General of Debt and Risk Management, in this case, the Directorate of Government Bond shall follow up the bid within no later than 10 (ten) business days upon the receipt thereof by it. 3. The follow-up as referred to in point 2 may be in the form of further discussion or refusal of such bid, with conditions as follows: a. in the event that the follow-up takes the form of refusal of the said bid, a notice thereof shall be made in writing to the Panel member by means of letter from the Director General; b. in the event that the follow-up takes the form of discussion of the said bid, the Director General shall deliver a notice regarding the schedule for the discussion of the terms and conditions of Government Bond Denominated in Yen.

10 In the event that the follow-up is in the form of discussion as referred to in point 3 letter b, Commitment-Maker Officer shall submit a notice to proceed to the appointed legal consultant as referred to in Article 21 to assist the government in supporting the preparation and implementation of the sales of Government Bond Denominated in Yen by means of Private Placement including the preparation of the required legal documents. 5. With regard to the discussion as referred to in point 3 letter b, Panel member shall be represented by an authorized official to carry out the discussion and sign the relevant agreement, and the Directorate General of Debt and Risk Management shall be represented by the Director of Government Bond. 6. In the event that the follow-up is in the form of discussion regarding bid for Government Bond Denominated in Yen as referred to in point 3 letter b, the result of discussion between the Panel member and the Directorate General of Debt and Risk Management, in this case, Directorate of Government Bond may refuse or accept such bid, with conditions as follows: a. in the event that the follow-up is a refusal, a notice thereof shall be made in writing to the Panel member by means of letter from the Director General; b. in the event that the bid is accepted, it shall be followed up by: 1) appointment of Panel member as Selling Agent by the Proxy of Budget User; 2) submission of appointment letter of Panel member as Selling Agent to the said Panel member by the Commitment-Maker Officer, followed up by the execution of Work Agreement between the Commitment-Maker Officer and the Selling Agent; and 3) execution by the Director of Government Bond representing the Director General of agreement documents including, among others, the terms and

11 conditions of Government Bond Denominated in Yen by the Selling Agent. 7. Proceeds from the Sales of Government Bond Denominated in Yen as set out in the agreement documents shall be specified by the Director General for and on behalf of the Minister of Finance. 8. The agreement documents as referred to in point 6 letter b item 3) and the proceeds from the Sale of Government Bond Denominated in Yen so specified as referred to in point 7 shall be submitted by the Director General to the Selling Agent. 9. The specified proceeds from the Sales of Government Bond Denominated in Yen as referred to in point 7 and the document of terms and conditions of Government Bond Denominated in Yen, or addendum to the terms and conditions of Government Bond Denominated in Yen as well as other instruments related to the Sales of Government Bond Denominated in Yen by means of Private Placement signed by the Director General for and on behalf of the Minister of Finance shall be submitted to the agent recording the ownership, clearing and Settlement, the paying agent for Government Bond interest and principal. 10. Proceeds from the Sale of Government Bond Denominated in Yen by means of Private Placement shall be announced to the public and relevant authorities on the Settlement date. Certified true copy Head of General Bureau on his behalf Head of Administration Dept. of the Ministry [Signed and Sealed] ARIF BINTARTO YUWONO NIP MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA, Signed. BAMBANG P.S. BRODJONEGORO