Republic of Indonesia FWP Free writing prospectus

Filed Pursuant to Rule 433

Registration StatementNo. 333-223441

April 6, 2020

Update Regarding Amendment of 2020 Budget

In December 2019, the emergence of a new strain of the coronavirus(“Covid-19”) was reported in Wuhan, Hubei Province, China, that has subsequently spread throughout the world, including Indonesia. On January 30, 2020, the World Health Organization declaredCovid-19 a public health emergency of international concern and on March 11, 2020, the World Health Organization declared the outbreak a pandemic. TheCovid-19 outbreak is currently having an adverse impact on the global economy, the severity and duration of which is difficult to predict.

On March 31, 2020, by virtue of Presidential Decree No. 11 of 2020, the President of Indonesia declaredCovid-19 a Public Health Emergency (Darurat Kesehatan Masyarakat). On the same day, the President also issued Government Regulation In Lieu of Law No. 1 of 2020 on Policies on State Finance and Financial System Stability to Deal withCovid-19 Pandemic and/or Threat to the National Economy and/or Financial System Stability. Through Presidential Regulation No. 54 of 2020 dated April 3, 2020 on Amendment to Posture and Details of the State Revenue and Expenditure Budget of 2020 Budget Year dated, which was published on April 6, 2020 (“Presidential Regulation No. 54 of 2020”), the President authorized an increase of the 2020 budget by Rp405.1 trillion for purposes of fighting the spread ofCovid-19, as follows: (i) Rp75 trillion for the health care sector, including medical personnel; (ii) Rp110 trillion for the expansion of the social safety net; (iii) Rp70.1 trillion to support manufacturers, small andmedium-sized enterprises and certain other companies, including support with regards to taxes, import duties and business credits; and (iv) Rp150 trillion to support a national economic recovery program.

In addition to authorizing these additional amounts for the 2020 budget, Presidential Regulation No. 54 of 2020 also reallocated the budgeted revenues and expenditures for the fiscal year 2020. Accordingly, the revenues and expenditures that had originally been budgeted by the Government pursuant to Law No. 20 of 2019 on the State Budget for Fiscal Year 2020, (which was signed into law on October 18, 2019) were revised, as set forth below.

Government Revenues and Expenditures

The following table sets out the Government revenues and expenditures for the periods indicated, including the original and reallocated budgeted revenues and expenditures for fiscal year 2020.

Government Revenues and Expenditures


	Year Ended December 31,
	2015^L		2016^L		2017^L		2018^L		2019^B		2019^P		2020 - Initial^B		2020 - Revised^B
	(in trillions of Rupiah)
Revenues and grants:
Domestic revenues
Tax revenues		1,240.4		1,285.0		1,343.5		1,518.8		1,786.4		1,545.3		1,865.7		1,462.6
Non-tax revenues		255.6		262.0		311.2		409.3		378.3		405.0		367.0		297.8
Total domestic revenues		1,496.0		1,546.9		1,654.7		1,928.1		2,164.7		1,950.4		2,232.7		1,760.4
Grants		12.0		9.0		11.6		15.6		0.4		6.8		0.5		0.5

Total revenues and grants		1,508.0		1,555.9		1,666.4		1,943.7		2,165.1		1,957.2		2,233.2		1,760.9
Expenditures:
Central government expenditures		1,183.3		1,154.0		1,265.4		1,455.3		1,634.3		1,498.9		1,683.5		1,851.1
Transfer to regions and rural fund⁽¹⁾		623.1		710.3		742.0		757.8		826.8		811.3		856.9		762.7
Total central and transfer expenditures		1,806.4		1,864.3		2,007.4		2,213.1		2,461.1		2,310.2		2,540.4		2,613.8
Suspend⁽²⁾		0.1						—		—		—		—		—

Total expenditures		1,806.5		1,864.3		2,007.4		2,213.1		2,461.1		2,310.2		2,540.4		2,613.8
Primary balance⁽³⁾		-142.5		-125.6		124.4		-11.5		-20.1		-77.5		-12.0		-517.8
Surplus/(deficit)		-298.5		-308.3		-341.0		-269.4		-296.0		-353.0		-307.2		-852.9
Financing:⁽⁴⁾⁽⁵⁾
Debt Financing		380.9		403.0		429.1		372.0		359.3		435.4		351.9		1,006.4
Investment Financing		-59.7		-89.1		-59.8		-61.1		-75.9		-49.4		-74.2		-229.3
On-Lending		1.5		1.7		-2.1		-4.3		-2.4		-1.7		5.2		5.8
Government Guarantee		—		-0.7		-1.0		-1.1		—		—		-0.6		-0.6
Other Financing		0.3		19.6		0.4		0.2		15.0		15.2		25.0		70.6

Total Financing		323.1		334.5		366.6		305.7		296.0		399.5		307.2		852.9

Source: Ministry of Finance

L LKPP (Government Financial Report/Audited)

P Preliminary

1)	Starting from the fiscal year, or FY, 2015, Government allocates rural fund based on law number 6/2014.

2)	Realized expenditures calculated by the Ministry of Finance differed from the figures calculated by line ministries and such discrepancies have been subtracted and added, respectively, to totals for such years after the fiscal year is over. “Suspend” is not reported in the current year.

3)	Primary balance represents revenues minus expenditures excluding interest expenditures.

In 2015, total financing of Rp323.1 trillion exceeded the budget deficit of Rp298.5 trillion and the Government added the difference of Rp24.6 trillion to its reserves. In 2016, total financing of Rp334.5 trillion exceeded the budget deficit of Rp308.3 trillion and the Government added the difference of Rp26.2 trillion to its reserves. In 2017, total financing of Rp366.6 trillion exceeded the 2017 deficit of Rp341.0 trillion and the Government added the difference of Rp25.6 trillion to its reserves. In 2018, total financing of Rp300.4 trillion exceeded the budget deficit of Rp259.9 trillion and the Government added the difference of Rp40.5 trillion to its reserves. In 2019, total financing of Rp399.5 trillion exceeded the 2019 deficit of Rp353.1 trillion and the Government added the difference of Rp46.4 trillion to its reserves.

5)	As of FY 2017, the financing line items have been reclassified and the previously reported data has been restated across the periods shown.

Government Revenues

The following table sets forth Government revenues by category for the periods indicated, including the original and reallocated budgeted revenues for fiscal year 2020.

Government Revenues


		Year Ended December 31,
		2015^L		2016^L		2017^L		2018^L		2019^B		2019^P		2020 - Initial^B		2020 - Revised^B
		(in trillions of Rupiah)
Domestic revenues:
Tax revenues:
Domestic tax
Income tax:
Oil and gas			49.7		36.1		50.3		64.7		66.2		59.1		57.4		43.7
Non-oil and gas			552.6		630.1		596.5		685.3		828.3		711.2		872.5		659.6
Total income tax			602.3		666.2		646.8		750.0		894.4		770.3		929.9		703.3
Value added tax (VAT)			423.7		412.2		480.7		537.3		655.4		533.0		685.9		529.7
Land and building tax			29.3		19.4		16.8		19.4		19.1		21.2		18.9		13.4
Excises			144.6		143.5		153.2		159.6		165.5		172.3		180.5		172.9
Other taxes	��		5.6		8.1		6.7		6.6		8.6		7.7		7.9		7.7
Total domestic taxes			1,205.5		1,249.5		1,304.3		1,472.9		1,743.1		1,504.4		1,823.1		1,427.0
International trade taxes:
Import duties			31.2		32.5		35.1		39.1		38.9		37.5		40.0		33.9
Export tax			3.7		3.0		4.1		6.8		4.4		3.5		2.6		1.8
Total international trade taxes			34.9		35.5		39.2		45.9		43.3		41.0		42.6		35.6
Total tax revenues			1,240.4		1,285.0		1,343.5		1,518.8		1,786.4		1,545.3		1,865.7		1,462.6
Non-tax revenues:
Natural resources:
Oil			48.0		31.4		58.2		101.5		118.6		90.1		96.8		40.4
Gas			30.2		12.6		23.6		41.3		41.2		30.3		30.5		12.9
Total oil and gas			78.2		44.1		81.8		142.8		159.8		120.4		127.3		53.3
General mining			17.7		15.8		23.8		30.3		25.0		26.2		26.2		22.1
Forestry			4.2		3.8		4.1		4.8		4.5		5.0		4.7		4.4
Fishery			0.1		0.4		0.5		0.4		0.6		0.5		0.9		0.9
Geothermal			0.9		0.9		0.9		2.3		0.9		1.9		1.2		1.5
Totalnon-oil and gas			22.8		20.8		29.3		37.8		31.0		33.6		33.0		28.9
Total natural resources			101.0		64.9		111.1		180.6		190.8		154.1		160.4		82.2
Profit transfer from SOEs			37.6		37.1		43.9		45.1		45.6		80.7		49.0		65.0
Othernon-tax revenues			81.7		118.0		108.8		128.6		94.1		122.1		100.9		94.7
Public Service Agency (BLU) Income⁽¹⁾			35.3		41.9		47.3		55.1		47.9		48.1		56.7		55.8
Totalnon-tax revenues			255.6		262.0		311.2		409.3		378.3		405.0		367.0		297.8
Total domestic revenues			1,496.0		1,546.9		1,654.7		1,928.1		2,164.7		1,950.4		2,232.7		1,760.4
Grants			12.0		9.0		11.6		15.6		0.4		6.8		0.5		0.5
Total revenues and grants			1,508.0		1,555.9		1,666.4		1,943.7		2,165.1		1,957.2		2,233.2		1,760.9

Source: Ministry of Finance

L LKPP (Government Financial Report/Audited)

P Preliminary

1)	Includes Government’s share of Bank Indonesia’s profits representing amounts in excess of Bank Indonesia’s capital ratio requirements, which excess amounts are transferred to the central Government to be used for repayments of certain central Government obligations to Bank Indonesia.

Government Expenditures

The following table sets forth the expenditures of the Government for the periods indicated, including the original and reallocated budgeted expenditures for fiscal year 2020.

Government Expenditures


	Year Ended December 31,
	2015^L		2016^L		2017^L		2018^L		2019^B		2020 - Initial^B		2020 - Revised^B
	(in trillions of Rupiah)
Central Government expenditures:
Personnel expenditures		281.1		305.1		312.7		346.9		381.6		416.2		N/A
Good and services expenditures		233.3		259.6		291.5		347.5		345.2		337.2		N/A
Capital expenditures		215.4		169.5		208.7		184.1		189.3		209.4		N/A
Interest payments:
Domestic debt		141.9		167.8		200.0		238.4		255.8		273.8		N/A
Foreign debt		14.1		15.0		16.6		19.5		20.0		21.4		N/A
Total interest payments		156.0		182.8		216.6		258.0		275.9		295.2		N/A
Subsidies:
Energy subsidies		119.1		106.8		97.6		153.5		160.0		125.3		N/A
Non-energy subsidies		66.9		67.4		68.8		63.4		64.3		62.3		N/A
Total subsidies		186.0		174.2		166.4		216.9		224.3		187.6		N/A
Grant expenditures		4.3		7.1		5.4		1.5		1.9		2.2		N/A
Social assistance⁽¹⁾		97.2		49.6		55.3		84.3		102.1		107.7		N/A
Other expenditures		10.1		6.0		8.8		16.2		114.0		128.0		N/A
Total central Government expenditures		1,183.3		1,154.0		1,265.4		1,455.3		1,634.3		1,683.5		1,851.1
Transfers to Regions and Rural Fund
Transfer to Regions
Balanced funds:
General transfer funds:
Revenue sharing funds		78.1		90.5		88.2		93.7		106.4		117.6		89.8
General allocation funds		352.9		385.4		398.6		401.5		417.9		427.1		384.4
Total general transfer funds		430.9		475.9		486.8		495.2		524.2		544.7		474.2
Specific allocation funds:
Physical special allocation fund		54.9		75.2		62.1		58.1		69.3		72.2		54.2
Non-physical special allocation fund⁽²⁾		97.2		88.8		105.6		115.3		131.0		130.3		128.8
Total specific allocation funds		152.1		163.9		167.7		173.4		200.4		202.5		183.0
Total balanced funds		583.0		639.8		654.5		668.6		724.6		747.2		657.2
Regional incentive fund⁽³⁾		1.7		5.0		7.5		8.2		10.0		15.0		13.5
Specific autonomy funds⁽⁴⁾		17.1		18.3		19.4		20.1		21.0		21.4		19.6
Specific Fund for Special Region of Yogyakarta⁽⁵⁾		0.5		0.5		0.8		1.0		1.2		1.3		1.3
Total Transfer to Regions		602.4		663.6		682.2		697.9		756.8		784.9		691.5
Rural Fund⁽⁶⁾		20.8		46.7		59.8		59.9		70.0		72.0		71.2
Total transfers to regions and Rural Fund		623.1		710.3		742.0		757.8		826.8		856.9		762.7
Suspend⁽⁷⁾		0.1		—		—		—		—		—		—
Total Government expenditures		1,806.5		1,864.3		2,007.4		2,213.1		2,461.1		2,540.4		2,613.8

Source: Ministry of Finance

L LKPP (Government Financial Report/Audited)

P Preliminary

B Budget. “Initial” refers to amounts authorized by the original budget, which was signed into law on October 18, 2019. “Revised” refers to revised amounts pursuant to Presidential Regulation No. 54 of 2020, which was signed into law on April 3, 2020 as part of the Government’s ongoing efforts to address the Covid-19 crisis in Indonesia. N/A indicates that Presidential Regulation No. 54 of 2020 stipulated only the total amount of revised total central Government expenditures but did not provide for its subcomponents.

1)	Consists of Social Assistance from Ministries/Agencies Spending and Social Assistance for Disaster Relief.

2)	Included under “Others” before FY 2016 except the regional incentive fund.

3)	Included under “Others” before FY 2016.

4)	Consists of specific autonomy fund and additional specific infrastructure autonomy fund for Papua and West Papua Provinces.

5)	Starting from FY 2013, Government allocates a specific fund for Yogyakarta’s privilege in other expenditures.

6)	Starting from FY 2015, Government allocates to the rural fund based on law number 6/2014.

7)	Realized expenditures calculated by the Ministry of Finance differed from the figures calculated by line ministries and such discrepancies have been subtracted and added, respectively, to totals for such years after the fiscal year is over. “Suspend” is not reported in the current year.

Deficit Financing

The following table sets forth, by amount, information on deficit financing for the periods indicated, including the original and reallocated budgeted deficit financing for fiscal year 2020.

Deficit Financing⁽¹⁾


	Year Ended December 31,
	2015^L		2016^L		2017^L		2018^L		2019^B		2020 - Initial^B		2020 - Revised^B
	(in trillions of Rupiah)
Debt financing
Government securities (net)		362.3		407.3		441.8		358.4		389.0		389.3		549.6
Loans
Domestic loans (net)		0.8		1.1		0.6		1.4		0.5		1.3		1.3
Foreign loans:
Gross drawings:
Program loan		55.1		35.3		20.9		50.6		30.0		21.6		82.0
Project loan		28.7		28.1		30.8		38.0		30.3		26.8		29.5
Total gross drawing		83.8		63.4		51.7		88.6		60.3		48.4		111.5
Amortization		-66.0		-68.7		-65.1		-76.3		-90.5		-87.1		-105.9
Total foreign loan (net)		17.8		-5.3		-13.4		12.3		-30.2		-38.8		5.7
Total loans (net)		18.7		-4.3		-12.7		13.6		-29.7		-37.5		7.0
Pandemic Bond														449.9
Total debt financing		380.9		403.0		429.1		372.0		359.3		351.9		1,006.4
Investment financing
Investment to SOEs		-64.5		-50.5		-6.4		-3.6		-17.8		-17.7		-16.0
Investment to other institutions		-7.1		-10.8		-3.2		-2.5		-2.5		-5.0		-5.0
Investment to public service agencies		-6.9		-25.3		-48.2		-52.7		-53.2		-52.5		-41.0
Investment in financial organizations/institutions		-0.3		-3.8		-2.0		-2.3		-2.4		-1.0		-0.8
Revenue of investment		19.1		1.4		—		—		—		2.0		2.0
Others investment financing														-168.7
Total investment financing		-59.7		-89.1		-59.8		-61.1		-75.9		-74.2		-229.3
Lending
On-lending to SOEs/local government/institutions/other agencies:		2.3		1.7		-2.1		-4.3		-2.4		5.2		5.8
Lending reserves		-0.8		—		—		—		—		—		—
Total lending		1.5		1.7		-2.1		-4.3		-2.4		5.2		5.8
Mandatory guarantee		—		-0.7		-1.0		-1.1		—		-0.6		-0.6
Other financing		0.3		19.6		0.4		0.2		15.0		25.0		70.6
Total financing (net)		323.1		334.5		366.6		305.7		296.0		307.2		852.9

Source: Ministry of Finance

L LKPP (Government Financial Report/Audited)

P Preliminary

1)	As of FY 2017, the deficit financing line items have been reclassified and the data previously reported has been restated across the periods shown.

The Republic has filed a registration statement (including a prospectus) and other documents with the U.S. Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Republic has filed with the SEC for more complete information about the Republic and this offering. You may get these documents for free by visiting EDGAR on the SEC web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by contacting Deutsche Bank AG, London Branch at Winchester House, 1 Great Winchester Street, London EC2N 2DB, UK, Attention: Syndicate Desk, by calling44-20-754-59389, or by emailing dcm.sea@list.db.com.

A preliminary prospectus supplement dated April 6, 2020 can be accessed through the following link:https://www.sec.gov/Archives/edgar/data/1719614/000119312520099013/d912392d424b3.htm

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Republic of Indonesia FWPFree writing prospectus