Green Bond Fact Sheet

Republic of Indonesia

Date: 01-Mar-2018

Issue date: 01-Mar-2018 Maturity date: 01-Mar-2023 Tenor: 5Issuer Name

Republic of Indonesia

Amount Issued

USD1.25bn

Country of risk

Indonesia

CBI Database

IncludedIssuer Type1

Sovereign

Bond Type

Sukuk

Green Bond Framework

N/A

Second party opinion

CICERO

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

N/A☒ Energy☒ Solar☒ Onshore wind
☒ Offshore wind
☒ Geothermal☒ Hydro☒ Tidal☐ Biofuels☒ Bioenergy☒ Waste to energy☐ District heating☐ Electricity grid

☐ Energy storage☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Buildings☒ Certified Buildings☐ HVAC systems☐ Energy performance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☒ Transport☐ Electric vehicles☐ Low emission vehicles☐ Bus rapid transit☒ Passenger trains☐ Urban rail

☐ Freight rolling stock☐ Coach / public bus☐ Bicycle infrastructure☐ Energy performance☐ Transport logistics☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Water & wastewater☐ Water distribution☐ Water treatment☐ Wastewater treatment☐ Water storage☐ Storm water mgmt
☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☒ Land use &agriculture☒ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose & paper☐ Land remediation☐ Energy/water efficiency☒ Sustainable agriculture☐ Adaptation & resilience☒ Other☐ Adaptation &resilience☐ ICT☐ Industry: process

Issue details
Reporting

The issuer will use external auditors to conduct annual reporting on use of proceeds andimpact reporting, which will be made publicly available.

Company information
Firsts, records andcertificationsFirst green bond from Indonesia, first sovereign green bond from Asia and fifth
globally.

Proceeds description

Renewable Energy: Proceeds will finance generation and transmission from renewablesources, including: onshore and offshore wind, solar, tidal, biomass, geothermal,hydropower. Explicitly excluded project types are: large hydropower plants (largerthan 30MW), fossil fuel electricity generation and related energy efficiency
improvements, and nuclear.
Energy Efficiency: Infrastructure energy efficiency improvements will have to result in
consumption reductions of at least 10% below the national average consumption ofan equivalent infrastructure.
Adaptation: As well as flood mitigation, R&D and drought management, this category
includes eligible projects related to food security and public health management.
Low Carbon Transport: Developments for public transportation include both lowcarbon and fossil fuel based vehicles. In their Second Party Opinion, CICERO
encourages the issuer to implement zero emission technologies where possible toavoid future lock ins.
Green Buildings: Financed buildings will have to be in line with the Greenshipcertification, developed by the Green Building Council Indonesia. CICERO awards thiscategory a “Light Green”, stating that this type of building certification does not
ensure energy efficiency improvements since “it is possible to achieve a Bronze or a
Silver Greenship certificate with no energy efficiency credits.”
Sustainable Agriculture: the issuer has new agricultural land obtained throughdeforestation will not be supported or financed under this category.
Other:
Sustainable Management of Natural Resources: Re-forestation, afforestation, habitatand biodiversity conservation are all eligible project types. CICERO expresses concern
around potential elements of deforestation that could be included in these projects,
awarding this category a “light to dark green”.

Climate Bonds view

Green Tourism: New tourist areas will comply with the Green Tourism Principles,while existing infrastructure will be optimised to reduce GHG emissions. Tourismprojects will also be developed to be climate change resilient.
We agree with CICERO that there are potential concerns and would like to see moreclarity and transparency around all investment projects in future reporting. Now thatthe bond has been issued, ministries and agencies can apply for funding, so it remains

to be seen which projects will be shortlisted and approved. We would also like to findout what share of proceeds are ultimately allocated to projects that do not align withthe Climate Bonds Taxonomy – such as social programs (e.g. public healthmanagement, food security), rerouting roads, green tourism and R&D investments.
Underwriters

Abu Dhabi Islamic Bank, CIMB, CITI, Dubai Islamic Bank, HSBC

Deal comments
Credit Rating

BBB (Fitch), Baa3 (Moody’s), BBB- (S&P)

Pricing summary

Pricing was tightened by 30bps, reducing yield to 3.75%.

Investors summary

1Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, nonfinancial corporate, sovereign