Keynote Address

Capital Market Update and

IDX Initiatives

Hasan FawziDirector of Business Development

Indonesia Stock Exchange

Location: Sumba Island, East Nusa Tenggara, Indonesia

Source: https://says.com/

USD 1.04 Tn GDP Nominal1

267 Mn

Population2

659Equity Issuers4

2.3 million+

Investors5

Massive Economy Impressive Outlook Prospective Capital Market

USD3.24 T

USD5.42 T

USD10.50 T

2018 2030 2050

Replacing

Germany,

surpassing

Rusia and Brazil

Replacing

Japan

#16

#5

#4

Indonesia’s economy rank

(GDP to PPP)3

• This number is relatively smaller

than the total potential listed

companies in Indonesia:

• ±120 SOEs, ±750 subsidiaries

• ±26 millions SMEs

• ±104,000 ltd./inc as bank-loan

receivers

• The 2nd lowest among ASEAN-5

countries

• Significantly lower than number

of bank saving account (±90

million accounts)

• Less than 1% of population

(relatively low among ASEAN

countries);

in ASEAN

1st

in Asia Approximately

equivalent to three

ASEAN countries

6th

in ASEAN

1st

in Asia

3rd

1 CEIC (2018)2 BPS Projection (2019)3PwC analysis for projections to 2050

4Indonesia Stock Exchange latest data, Credit Burau, Bank Indonesia (Dec 2015), Ministry of SOE (2015), Economic Census (2016)5Indonesia Stock Exchange (2019), World Bank Global Findex (2017)

Best of Indonesia

2

Working age

(15-64 years):

±183,36 mn

Indonesia’s Capital Market at Glance

Stocks

659 listed companies

Rp7.138 t market capitalization

Number of

productOutstanding

REIT (Real Estate Investment

Trust)3 Rp16,0 t

ETF (Exchange Traded Fund) 35 Rp13,9 t

ABS (Asset Backed

Securities), series14 Rp8,7 t

DINFRA (Dana Investasi

Infrastruktur)1 Rp1,0 t

Futures, contract 9 n/a

Main Product

Structured Product and

Derivative

Bonds

119issuer

Rp440 t corporate bonds outstanding

Rp2.699 tgovernment bonds outstanding

3

As of October 2019

DINFRA as new source of fund for infrastructure development.

KIK-DINFRA MJPT001 is the first listed Dana Investasi Infrastruktur

(DINFRA) / Infrastructure Fund issued by PT Mandiri Manajer

Investasi

DINFRA launched with collective investment scheme (KIK) and

should have infrastructure-based asset at least 51% in the portfolio.

Product Name : KIK-DINFRA MJPT001

Listing Date : 15 April 2019

Investment Value : IDR 1.5 trillion

Investment Manager : PT Mandiri Manajer Investasi

Focused Infra Project : Pandaan Tol Road, owned by Jasa Marga

4

IDX and Capital Market Initiatives

Supply

Demand

Attracting New Listed Companies through Acceleration Board for SME companies

and OJK-IDX System Integration for Listing Document and Reporting.

New Product as a new way of investing and fund raising;

DIRE, DINFRA, Green Bonds, New ETFs, Structured Warrant,

Index Futures (Stock & Bonds) and Single Stock Futures.

Simplification of Account Opening,

from 1-7 days to less than 30 minutes.

Expanding participation through Digitalization with e-IPO, e-Proxy, e-Voting.

Increasing Disclosure & Investor Protection with bilingual disclosure for listed

companies, special notation, and sustainabilty report.

Intermediaries

1. Regional Securities

Company

2. T+3 to T+2 settlement

cycle

3. Securities Lending &

Borrowing

4. Tri-Party Repo

5. Securities Financing

6. ETP for Bond Trading

System

7. Sustainable Stock

Exchange

5

Indonesia is leading in number of IPO among ASEAN countries

57

2220

13

15

Indonesia Malaysia Thailand Singapore Philippines Vietnam

42

22

15

11

30

Indonesia Malaysia Thailand Singapore Philippines Vietnam

2018

Q1Q3

2019

Source: EY Global IPO Trend Q4 2018

Source: EY Global IPO Trend Q3 20196

Rapid Growth of Investors

894

1,123

1,619

2,220

281 321 364

434 536

630

852

1,035

2012 2013 2014 2015 2016 2017 2018 30-Sep-19

44%

26%

106%

19%14%14%

(in thousand investor)

S-INVEST + C-BEST

Integration

37%

Stock Only Account

Stock + Mutual Fund + Bond Account

7

Local Investors Portion Increases, becoming Less Sensitives with Foreign

Source: IDX, Custodian House (KSEI)

64.49% 63.79%54.49% 51.30% 52.17% 50.84%

35.51% 36.21%45.51% 48.70% 47.83% 49.16%

2014 2015 2016 2017 2018 Oct-19

Domestic

Foreign

40.58% 43.21% 36.77% 36.63% 36.97% 31.44%

59.42% 56.79% 63.23% 63.37% 63.03% 68.56%

2014 2015 2016 2017 2018 Jan-Oct '19

Domestic

Foreign

Ownership

Trading Activity

8

Daily trading activities reach the all time high

9

Average Daily Trading Volumemillion shares

Average Daily Number of Tradestimes

Average Daily Trading TurnoverIDR billion

Source: IDX

As of October 2019

4,284 5,503 5,484 5,928

7,827

11,953 10,568

15,103

2012 2013 2014 2015 2016 2017 2018 2019

+13.77% p.a

4,537

6,238 6,006 5,764

7,498 7,603 8,500

9,368

2012 2013 2014 2015 2016 2017 2018 2019

+9.38% p.a

121,712 153,686

212,635 221,583 264,127

312,485

386,804

462,966

2012 2013 2014 2015 2016 2017 2018 2019

+17.96% p.a

Key Takeaways

We would like to invite all of the audience here to

remain bullish in today’s global economic turmoil

and have confidence with Indonesian capital

market.

New various capital market products have been

launched and we will launch numbers of

innovative products to meet your needs for

source of financing and investment.

10

Thank you!

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Lebih Baik! Sehari Lebih Cepat,Selangkah Lebih Efisien