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Indonesia Market Reportby
Association of Indonesian Securities
CompaniesLily Widjaja, Chairperson
Osaka, September 2011
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Highlights
Economic Performance
Capital Market Performance Regulatory Developments
Industry Developments & Challenges
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Indonesian Central Bank
Intere st Rate
-
2.00
4.00
6.00
8.00
10.00
12.00
14.00
Jan-
08
May-
08
Sep-
08
Jan-
09
May-
09
Sep-
09
Jan-
10
May-
10
Sep-
10
Jan-
11
May-
11
Sep-
11
%
Indonesia Inflation - CPI
0
2
4
6
8
10
12
14
1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7
2008 2009 2010 2011
%yoy
Economic Performance
4.79
6.75
Source : Indonesia Central Bank Source : BPS-
Statistic Indonesia
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0
1
2
3
4
5
6
7
8
9
10
Jan-03
Jul-0
3
Jan-04
Jul-0
4
Jan-05
Jul-0
5
Jan-06
Jul-0
6
Jan-07
Jul-0
7
Jan-08
Jul-0
8
Jan-09
Jul-0
9
Jan-10
Jul-1
0
Jan-11
Jul-1
1
ABC
Economic Performance
S&P Rating -
Indonesia
Moodys Rating -
Indonesia
Capital inflow to Indonesia has strengthened exchange rate and increased
foreign
exchange reserve.
On April 2011 Indonesias rating was upgraded by S&P to BB+ (one level below
investment grade).
Earlier on January 2011, Moodys increased
the rating to Ba1.
Exchange Rate vs. Foreign Exchange Reserve (Jan-2008
Aug-2011)
-
20.00
40.00
60.00
80.00
100.00
120.00
140.00
1 4 7 10 1 4 7 10 1 4 7 10 1 4 7
2008 2009 2010 2011
(USDB
illion)
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
IDR/US
Foreign Exchange Reserve Exchange Rate
0
1
2
3
4
5
6
7
8
9
10
Jan-03
Jul-0
3
Jan-04
Jul-0
4
Jan-05
Jul-0
5
Jan-06
Jul-0
6
Jan-07
Jul-0
7
Jan-08
Jul-0
8
Jan-09
Jul-0
9
Jan-10
Jul-1
0
Jan-11
Jul-1
1
ABC
B-
CCC+
CCC
B+
BB-
BB
BB+
BBB-
BBB
BBB+
B
B3
Caa1
B1Ba3
Ba2
Ba1
Baa3
Baa2
Baa1
B2
Source : Indonesia Central Bank
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IDX Composite
2,000
2,500
3,000
3,500
4,000
4,500
0 4- J an - 10 0 4- Ma r -10 0 4- Ma y -10 0 4- J ul - 10 0 4- S ep -10 0 4- No v -10 0 4- J an - 11 0 4- M ar - 11 0 4- Ma y- 11 0 4- J ul -11 0 4- S ep -11
Capital Market Performance Stock Market
Trading Value, Listed Issuers and Market Capitalization in 2011 increased compared to 2010.
Composite Index record high 4,193 on 1 August 2011.
On 23 September 2011, the Composite Index was at 3,426.34 (7.48% vs. 2010).
2009 2010 Aug
2011
Total Trading Value (IDR
billion)
975,135 1,176,237 861,306
Average Trading Value per
Day (IDR billion)
4,046 4,801 5,284
10.1%
Composite Index
High 2,534.36 3,786.10 4,193.44
Low 1,256.11 2,475.57 3,346.06
Close 2,534.36 3,703.51 3,841.73
Listed Issuers 398 420 432
Market Capitalization
(IDR billion)
2,019,375 3,247,097 3,468,309
6.81%
46.1%
7.48%
4,193 (1 Aug 2011)
Source: IDX
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Capital Market Performance 20 Most Active Brokerage Houses in Total Value Jan-Aug11
Rank Name Total
(IDR-trill)
%
1 Credit Suisse Securities Indonesia 125.13 7.26
2 JP Morgan Securities Indonesia 94.11 5.46
3 CIMB Securities Indonesia 87.94 5.11
4 Deutsche Securities Indonesia 85.12 4.94
5 Kim Eng Securities 83.32 4.84
6 Bahana Securities 73.37 4.26
7 CLSA Indonesia 71.11 4.13
8 UBS Securities Indonesia 67.17 3.90
9 Macquarie Capital Sec. Indonesia 61.75 3.58
10 e-Trading Securities 57.36 3.33
Source : IDX
Rank Name Total
(IDR-trill)
%
11 Mandiri Sekuritas 55.19 3.20
12 OSK Nusadana Sec. Indonesia 47.14 2.74
13 Merrill Lynch Indonesia 44.74 2.60
14 Danareksa Sekuritas 42.15 2.45
15 Ciptadana Securities 39.26 2.28
16 Indo Premier Securities 38.51 2.24
17 Net Sekuritas 28.25 1.64
18 BNI Securities 27.36 1.59
19 Valbury Asia Securities 25.83 1.50
20 UOB Kay Hian Securities 24.78 1.44
Total of 20 Firm 1,179.58
% of Total Transaction 68.48
Total Transaction 1,722.61
20 amongst 118 active brokerage houses
accounted for 68% total value transactions(11 of these top 20 brokers are foreign
houses, accounted for 46% total value
transactions).
Total 25 foreign brokers accounted for 55%
total value transactions.
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Capital Market Performance Bond Market
The total transactions of the
bonds has increased
significantly for the past two
years.
Government Bond holds the
majority of the total bond
volume transaction and
outstanding.Bond O utstanding Value (Rp-trill)
515
609670
757840
436
535 582
641704
-
200
400
600
800
1,000
2007 2008 2009 2010 2011*
* 2011 only consis t of Jan-Aug
Total Bond (Rp-trill) Govt Bond (Rp-trill)
Source : IDX
excluding non IDR dominated Corporate bond
Series -
Issued 2010 2011*
Government 81 86
Corporate 245 281
Total Value Transaction Bond (Rp-trill)
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2007 2008 2009 2010 2011*
* 2011 only consist of Jan-Aug
-
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
Total Govt and Corp Bond (Rp-trill) Corporate Bond
Source : IDX
* 2011 only consist of Jan-Aug
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Regulatory Developments
Revised Regulations introduced end of 28 December
2010 to be effective 1 February 2012:
Internal Control for Securities Company (4 Departments revised
to 6 Functions, incl. Compliance and Risk Management)
Adjusted Net Working Capital (single haircut to various haircuts,
and ranking liabilities risk-based capital)
Safety of Securities Deposited with Securities Company
Segregated Funds Account for Clients at Payment Bank,
in addition to Securities Sub-Account for Clients at
Central Securities Depository Surveillance System to monitor irregular transactions
BCP to ensure business continuity
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Regulatory Developments
Single Investor Identification (SID) and Trading-ID
AKSes Card Facility Investor Protection Fund
Integration of Securities Company Back Office withSecurities Central Depository
Straight Through Processing
KYC and Anti-Money Laundering
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Industry Developments & Challenges
Direct Market Access
On-line Trading and Mobile Trading Brokers Competition & Anti-Monopoly
Brokerage fee
Underwriting fee Licensed Professionals
Professional Exams Board
Capital Markets School
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Industry Developments & Challenges
Education and Training Advanced Education for Directors
KYC and Anti-Money Laundering Training
Securities Company Information System Clients
Employees
Securities Companies
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