The document discusses the effect of the strengthening US dollar on Indonesia's capital market. It notes that while Indonesia's stock index, the Jakarta Composite Index, reached a high in April 2015, it has since dropped nearly 8% as several major companies reported lower than expected earnings. It also discusses Indonesia's economic growth slowing to 4.71% in the first quarter of 2015, the lowest in years. The strengthening US dollar has caused the Indonesian rupiah to fall over 5% this year, adding pressure to the capital market.

1. Jakarta, May 2015
The Effect of US Dollar Reinforcement to
Indonesia Capital Market

2. IDX Latest Highlights

3. -
600
1,200
1,800
2,400
3,000
3,600
4,200
4,800
5,400
Jakarta Composite Index and Capital Market Milestones
3
*) 22 May 2015
1992 – 22 May 2015
02-Jan-2013
New Trading Hours
4,254.816
1992 1993 1994 19961995 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
30-Nov-2007
Consolidation of the SSX into
JSX to become the IDX
2,688.332
6-Oct-2004
Launching of
Stock Option
856.060
28-Mar-2002
Implementation of
Remote Trading
481.775
9-Sep-2002
T+4 to T+3 Settlement
430.271
21-Jul-2000
Scriptless Trading
512.617
23-Dec-1997
Founding of
KSEI
397.031
23-Jul-1997
Financial Crisis
718.189
6-Aug-1996
Founding of KPEI
554.790
24-Jul-1995
Merging process of SSX into
Bursa Paralel Indonesia
509.532
22-May-1995
JATS
461.389
13-Jul-1992
Privatization of JSX
321.544
8-Oct-2008
Suspend Trading
1,451.669
7-Apr-2015
Highest Index
5,523.290
2-Mar-2009
JATS Next G
1,256.109
28-Oct-2008
Lowest Index in 2008
1,111.390
2010 2011 2012 2014
06-Jan-2014
New Lot Size & Tick Size
4,202.809
2013 2015*
Source: IDX

4. Jakarta Composite Index : Annual Return
4
Source: IDX
1000.233
1162.635
1805.523
2745.826
1355.408
2,534.356
3,703.512
3821.992
4316.687
4,274.177
5,226.947
5,315.153
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
55.30% 52.08%
2004 2005 2006 2007 2008 2009
86.98%
-50.64%
3.20%
2010 2011
*) 22 May 2015
44.56% 16.24%
2012
46.13% 12.94%
2013
2004 – 22 May 2015
-0.98%
2014
22.29%
2015*
1.69%

5. 5
Average Daily Trading and Market Capitalization
*) 22 May 2015
Volume (in Million Share) Value (in IDR Billion)
Frequency (in Times) Market Capitalization ( in IDR Trillion)
3,283
6,090
5,432
4,873
4,284
5,503 5,484
6,491
2008 2009 2010 2011 2012 2013 2014 2015*
4,436 4,046
4,801 4,953 4,537
6,238 6,006
6,633
2008 2009 2010 2011 2012 2013 2014 2015*
55,905
87,040
105,790 113,454 121,712
153,686
212,635 228,146
2008 2009 2010 2011 2012 2013 2014 2015*
1,076
2,019
3,247 3,537
4,127 4,219
5,228 5,363
2008 2009 2010 2011 2012 2013 2014 2015*
Source: IDX

6. Market Capitalization and Trading Value By Industry
6
Total Market Capitalization as of 22 May 2015 : IDR 5.363 Trillion
Source: IDX
4.6%
6.1%
6.9%
6.3%
6.8%15.9%
13.3%
22.7%
17.4%
3.0%
4.5%
6.2%
7.0%
20.5%
7.1%
12.7%
25.6% 13.4%
Agriculture (21)
Mining (41)
Basic Industry And
Chemicals (65)
Miscellaneous Industry
(41)
Consumer Goods
Industry (37)
Property And Real Estate
(55)
Infrastructure, Utilities &
Transportation (52)
Finance (87)
Trade, Services &
Investment (114)
Market
Capitalization
Trading
Value
22 May 2015

7. [S] Sharia Compliant Stock
Top 20 in Market Capitalization
7
Source: IDX
Market Capitalization
(in Trillion Rp)
1. BBCA Bank Central Asia Tbk. 350.26 6.53
2. UNVR Unilever Indonesia Tbk. [S] 334.00 6.23
3. HMSP HM Sampoerna Tbk. 317.55 5.92
4. BBRI Bank Rakyat Indonesia (Persero) Tbk. 307.72 5.74
5. ASII Astra International Tbk. [S] 306.66 5.72
6. TLKM Telekomunikasi Indonesia (Persero) Tbk. [S] 289.30 5.39
7. BMRI Bank Mandiri (Persero) Tbk. 263.92 4.92
8. BBNI Bank Negara Indonesia (Persero) Tbk. 130.62 2.44
9. PGAS Perusahaan Gas Negara (Persero) Tbk. [S] 101.81 1.90
10. GGRM Gudang Garam Tbk. 90.58 1.69
11. UNTR United Tractors Tbk. [S] 86.82 1.62
12. KLBF Kalbe Farma Tbk. [S] 86.25 1.61
13. INTP Indocement Tunggal Prakarsa Tbk. [S] 82.55 1.54
14. ICBP Indofood CBP Sukses Makmur Tbk. [S] 81.20 1.51
15. SMGR Semen Indonesia (Persero) Tbk. [S] 77.85 1.45
16. EMTK Elang Mahkota Teknologi Tbk. 64.72 1.21
17. INDF Indofood Sukses Makmur Tbk. [S] 60.37 1.13
18. CPIN Charoen Pokphand Indonesia Tbk. [S] 52.56 0.98
19. LPPF Matahari Department Store Tbk. 51.21 0.95
20. JSMR Jasa Marga (Persero) Tbk. 44.71 0.83
3,180.65 59.31
5,363.00
%
Market Capitalization of The 20 Stocks
Total IDX
No. Code Company
22 May 2015

8. 8
Agriculture
Mining
Miscellaneous Industry
Consumer Goods Industry
Property, Real Estate And Building
Construction
Basic Industry and Chemical
Infrastructure, Utilities, & Transportation
Finance
Trade, Services & Investment
0
50
100
150
200
250
300
350
Dec-10
Feb-11
Apr-11
Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
Jun-12
Aug-12
Oct-12
Dec-12
Feb-13
Apr-13
Jun-13
Aug-13
Oct-13
Dec-13
Feb-14
Apr-14
Jun-14
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
Comparative Return by Industry
Dec 2010 = 100
Source: IDX

9. Currently, foreign investor still own a majority stake at
Indonesia Stock Exchange
Distributions of Tradeable Stocks*
9
As of April 2015
Source: KSEI *) Scriptless Securities
Domestic Investor
Value: IDR 1,055.58 Tn
Percentage: 35.18%
Foreign Investor
Value : IDR 1,852.83 Tn
Percentage : 64,82%
Individual
Institution
Others
• Value : IDR 172.8 Tn
• Percentage : 17.18%
• Value : IDR 826.63 Tn
• Percentage : 82.40%
• Value : IDR 4.15 Tn
• Percentage : 0.41%
Individual
Institution
Others
• Value : IDR 16.31 Tn
• Percentage : 0.88%
• Value : IDR 1,250.6 Tn
• Percentage : 67.5%
• Value : IDR 585.93
• Percentage : 31.62%

10. The Effect of US Dollar Reinforcement To
Indonesia Capital Market

11. JCI and IDR : Trend Comparison
11
Source: Bloomberg
• The rupiah has fallen by more than 5% this year, a contrasting performance compared to the
Jakarta Composite Index (JCI) which achieved highest level in April, 7Th 2015 at 5,523.29.
• Unexpectedly, JCI dropped 7.9% from its highest level to 5,086.43 in the end of April.
• Nevertheless, JCI ready to rebound gradually after tumbling 400 points.
5,313.21
13,150
11,800
12,000
12,200
12,400
12,600
12,800
13,000
13,200
13,400
4,600
4,700
4,800
4,900
5,000
5,100
5,200
5,300
5,400
5,500
5,600 2-Jan
8-Jan
14-Jan
20-Jan
26-Jan
1-Feb
7-Feb
13-Feb
19-Feb
25-Feb
3-Mar
9-Mar
15-Mar
21-Mar
27-Mar
2-Apr
8-Apr
14-Apr
20-Apr
26-Apr
2-May
8-May
14-May
20-May
IHSG (LHS) IDR/USD (RHS)

12. What happened to JCI in recent weeks ?
Company financial performance was below expectation
12
Q1-2014 Q1-2015 Q1-2014 Q1-2015
BBRI PT Bank Rakyat Indonesia (Persero) Tbk 5.93 6.14 16.7% 3.5%
BMRI PT Bank Mandiri (Persero) Tbk 4.92 5.14 14.4% 4.3%
BBCA PT Bank Central Asia Tbk 3.70 4.10 28.0% 10.8%
ASII PT Astra International Tbk 4.73 3.99 9.7% -15.6%
TLKM PT Telekomunikasi Indonesia (Persero) Tbk 3.65 3.81 4.9% 4.4%
UNVR PT Unilever Indonesia Tbk 1.36 1.59 -4.9% 16.9%
HMSP PT HM Sampoerna Tbk 2.75 2.89 5.4% 5.1%
BBNI PT Bank Negara Indonesia (Persero) Tbk 2.39 2.82 15.6% 17.7%
PGAS PT Perusahaan Gas Negara (Persero) Tbk 2.09 1.40 -18.7% -32.9%
GGRM PT Gudang Garam Tbk 1.42 1.28 35.3% -9.6%
INDF PT Indofood Sukses Makmur Tbk 1.37 0.87 89.8% -36.5%
SMGR PT Semen Indonesia (Persero) Tbk 1.30 1.19 4.8% -8.5%
ICBP PT Indofood CBP Sukses Makmur Tbk 0.69 0.80 7.0% 15.7%
AALI PT Astra Agro Lestari Tbk 0.78 0.16 120% -80.0%
KLBF PT Kalbe Farma Tbk 0.49 0.53 11% 7.1%
* earning growth down, up or slowed compared to previous quarter
Companies
Quarterly Earning (Rp Trillion) Earning Growth (%)
Code Changes*
Source: IDX

13. 5.14
5.03 4.92
5.01
4.71
0
1
2
3
4
5
6
7
8
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
% YoY
Weak companies performance was also translated into
economic slowdown in the Q1-2015
13
Source: Statistics Indonesia
Average Indonesia economic
growth for 10 years is 5.73%
“Indonesia is one of only
few countries survive
Global Economic
Slowdown in 2008-9
without falling into a
recession”
 Indonesia economy in the first
quarter 2015 is recorded 4.71%
(yoy) or lower than previous
quarter at 5.01% (yoy) and
analyst forecast at 4.94%. This
is the slowest economic growth
since Q3-2009 or during the
global financial crisis.
 Almost all sectors point to flat-
to-lower growth. The main
driver was mining sector as it
contracted 2.32% yoy in 1Q15
from 2.22% yoy in 4Q14
particularly caused by coal
 Other sectors contributing to
growth slowdown were
wholesale & retail trade,
manufacturing, and
construction
 Furthermore, economic
slowdown also contributed by
weak government expenditure
& investment activities

14. -11.49
-8.95
-7.71
-7.04
-6.60
-5.58
-5.55
-5.50
-4.81
-4.65
-3.11
-2.89
-2.55
-1.88
-1.52
-0.96
-0.70
-0.27
0.03
0.14
0.29
0.58
3.62
21.77
Brazilian Real
Turkish Lira
Bulgarian Lev
Romanian Leu
Czech Koruna
Indonesian Rupiah
Argentine Peso
Peruvian New Sol
Colombian Peso
Hungarian Forint
Polish Zloty
Malaysian Ringgit
Mexican Peso
South African Rand
Thai Baht
Indian Rupee
Singapore Dollar
South Korean Won
Hong Kong Dollar
Chinese Renminbi
Chilean Peso
Philippine Peso
Taiwanese Dollar
Russian Ruble
78
80
82
84
86
88
90
92
94
96
98
100
102
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
Indonesia economic slowdown was overshadowed by the
trend of US dollar appreciation
14
Source: Bloomberg
Currency changes against US Dollar
31 Dec 2014 – 21 May 2015 (%)
US Dollar Index* Movement
USD has appreciated around 19.4% against world's
major currencies since early 2013
*) The US Dollar Index is an index that measures the relative value of the US dollar against a basket of currencies of major countries include
Euro (EUR), Japanese Yen (JPY), Poundsterling (GBP), Canadian Dollar (CAD), Swedish Krona (SEK), and Swiss Franc (CHF)
Average US Dollar Index
Dec 2012-21 May 2015 :
84.2
+19.4%

15. How is the impact on Indonesia capital market ? (1/2)
Rupiah depreciation provides additional risk to foreign investor
15
Source: Bloomberg
143.2
97.56
60
70
80
90
100
110
120
130
140
150
160
Dec-10
Feb-11
Apr-11
Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
Jun-12
Aug-12
Oct-12
Dec-12
Feb-13
Apr-13
Jun-13
Aug-13
Oct-13
Dec-13
Feb-14
Apr-14
Jun-14
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
JCI in IDR (Domestic Investor)
JCI in USD (Foreign Investor)
Dec 2010 = 100

16. 16
Source: IDX
How is the impact on Indonesia capital market ? (2/2)
Rupiah depreciation has raised concern on recent capital outflow
Figures in Billion Rupiah
5,695
11,242
1,828
722
(356)
(20,132)
(2,480)
(5,695)
(365)
(1,981)
(3,859)
(5,266)
2,330
7,817
14,476
8,672
8,089
2,738
13,070
(1,317)
(7,402)
(3,202)
5,281
(7,954)
212
10,608
(5,426)
5,896
(3,018)
2011
2012
2013
Jan Feb Mar Apr
May Jun Jul Aug Sep Oct Nov Dec 2014
Jan Feb Mar Apr May Jun Jul
Aug Sep Oct
Nov
Dec
2015
Jan Feb
Mar
Apr
May
24,290
15,881
(20,647)
42,598
8,272

17. Going forward, volatility in the financial sectors are still in place
Markets are assessing the Fed policy on potential rate hikes – Fed Fund Rate
(timing, size, & pace)
17
Source: Bloomberg, Fed minutes
0
1
2
3
4
5
6
7
8
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15
Fed Fund Rate
“The Fed had raised FFR up
to 400 bps before The U.S.
subprime mortgage crisis”
• In the latest FOMC meeting, majority of members has reduced the FFR projection in
2015 to 0.625 %, lower than previous projection of 1.125%.
• Meanwhile, FFR projection in 2016 is also lowered to 1.875% compared to the
previous projection of 2.5%.
%

18. The increase in FFR will lift the short term volatility in the stock
market
18
The period in which The Fed start to reduce its assets purchase
program and raising the plan to increase FFR

19. While The Fed plans to tighten its monetary policy, ECB and BoJ
tend to expand their stimulus programs
19
Other
Central
Banks
European Central Bank (ECB) Bank of Japan (BOJ)
• €1,1 trillion in total stimulus by purchasing €60 billion of bonds
per month, with the programme set to run until Sept. 2016
• Lowering interest rates
‒ Main refinancing operations 0.05%
‒ Deposit facility -0.2%
‒ Lending facility 0.3%
• The BoJ expand annual JGB purchases to 80 trillion
yen, from 50 trillion yen currently, and extend the
duration of bonds it holds to about 7-10 years
• Fixed interest rate at 0.1%
• People’s Bank of China (PBOC) cut interest rates for the third time in six months amid a
worse-than-expected economic slowdown
• Swiss National Bank (SNB) discontinued the minimum exchange rate (Swiss Franc against
Euro) and cut interest rates to negative level
• Central Bank of India and Korea also started to cut their rates
Source : various sources

20. As ECB and BoJ move to greater stimulus, increase in global
liquidity is expected to drive sentiment higher
20
(CentralBankbalance
sheetas%ofGDP)
2008 2009 2010 2011 2012 2013 2014 2015
0
10
20
30
40
50
60
70
80
90
Japan
Eurozone
Average
US
BoJ to buy JGBs at an annual rate of
¥80 tn (USD705 bn)
Projection
ECB to start simulus amounting USD1,2
trillion until September 2016
Source : Eastpring Investment, Bloomberg
Global Liquidity Projection in 2015
Index Return
(Jan 2015 - 21 May 2015)
1.13%
1.65%
1.91%
1.92%
2.22%
2.60%
3.49%
5.10%
6.81%
8.36%
10.82%
15.77%
16.60%
20.45%
21.00%
40.03%
India : BSE Sensex 30
Indonesia: IHSG
Thailand : SET Index
Malaysia: FTSE Bursa Malaysia
Singapore: Straits Times
US: Dow Jones
US: S&P500
Australia : All Ordinaries
UK : FT100
Philippines : PSE Index
South Korea: KOSPI
Japan: Nikkei 225
Hong Kong: Hang Seng
France : CAC 40
Germany : DAX
China: Shanghai

21. IDX Future Prospects And Challenges

22. Despite the potential pressure in the stock market, the prospects
for Indonesia economy is predicted to remain solid
22
Consuming Class population estimation by 2030
Million People1
Supported by the fact that most of the
population is in the productive age and it is
expected to increase ...
... along with the increasing numbers of people that would join
Indonesia’s consuming class
40
2010 20203 2030 in 5-6%
GDP Scenario
2030 in 7%
GDP Scenario
240 265 280 280
Indonesia Population Pyramid
2010 Indonesia Census
1) Rounded to the nearest five million
2) Consuming class defined as individuals with an annual net income of above $3.600 at 2005 purchasing power parity (PPP)
3) Based on annual GDP growth of between 5 %and 6%
Population Median Age: 29 year
Supported by young and productive ages population
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85-89
90-94
95+
12,000 8,000 4,000 0 4,000 8,000 12,000
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85-89
90-94
95+
Woman
Man
ProductiveAge
Below
Consuming
Class
Consuming
Class2
Population
Additional people in the
consuming class 90 125
Source: McKinsey

23. Low penetration in Indonesia capital market (1/2)
Indonesia is the largest economy in South East Asia, about the
size of Thailand, Malaysia, and Singapore combined
23
Number of
Investor
Account
(2013)
Number of
Listed
Companies
(2013)
0,2% from 240
mn population
15,2% from 29
mn population
1,5% from
68 mn
population
0,6% from
98 mn
population
30% from
5,4 mn
population
408,045
4,400,000
974,851
585,562
1,630,000
Indonesia Malaysia Thailand Philippines Singapore
483
911
584
257
776
Indonesia Malaysia Thailand Philippines Singapore
Sources: IDX Annual report 2013, BM Annual report 2013, SET Annual report 2013, PSE Academy, SGX Annual Report 2013

24. 24
267%
153%
107%
59%
92%
89%
68%
49%
30%
250%
160%
92%
93%
80%
91%
61%
40%
26%
245%
136%
113%
92%
90%
87%
76%
49%
38%
Singapore Malaysia Thailand Japan Philippine Australian India Indonesia China
2012 2013 2014
Source : World Economic Outlook & IMF
Low penetration in Indonesia capital market (2/2)
Indonesia market has large room for growth

25. 25
Potential Challenges for Indonesia Capital Market
• Supply
 To increase number of issuers
 Developing new product
• Demand
 To increase number of domestic investors
 Improving public awareness about investment in capital
market
• Infrastructure & Technology
 To provide high capacity of trading and surveillance system
• Increased HR/Professional in Capital Market
 The Regulatory & Supervision Function (OJK, IDX, KPEI, KSEI)
 The Capital Market Supporting Profession (Brokerages, Fund
Managers, Underwriters, Auditors, Bank Custody, etc)
1
2
3
4

26. 26
Thank you