Dr. Tito Sulistio presented an outlook on the Indonesia capital market in 2018. The key points were: 1. Indonesia has maintained stable economic growth between 4-6% in recent years. 2. The Indonesian capital market has seen aggressive growth, with the Jakarta Composite Index increasing over 2000% in the past 25 years. 3. The capital market has shown resilience to political events. 4. Indonesia offers the highest market returns for long-term investors among major world exchanges. 5. There is potential for increasing the number of listed companies on the Indonesian stock exchange.

1. Dr. Tito Sulistio
31 OCTOBER 2017
THE OUTLOOK OF INDONESIA
CAPITAL MARKET 2018

2. Source: Statistics Indonesia, Bloomberg
2
Stabilitas Pertumbuhan Ekonomi Indonesia
6,48
4,74
5,01
4
5
6
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
2011 2012 2013 2014 2015 2016 2017
Pertumbuhan Ekonomi Rerata Pertumbuhan
Average Growth 2011-2016 = 5.44

3. Indonesia Economic Indicator : Crisis vs Today 3
Economic Indicators 1998 2008 2016 2017 (YTD) APBN 2018
Economic Growth (yoy) -13.10% 4.12% 5.02% 5.01% 5.4%
Inflation 82.40% 12.14% 3.02% 3.72% 3.5%+1%
BI Rate N/A 9.25% 4.75% 4.25% 4.25%
FX Reserves (USD bn) 17.40 50.2 116.36 129.40 -
IDR Exchange Rate 16,650 12,650 13,398 13,630 13.400
NPL Gross 30% 3.80% 3.20% 3.05% -
GDP USD Billion 115.3 558.6 932.4 1,020* -
Government Debt over GDP 100% 27.4% 27.46% 28.1% -
Sovereign Rating:
(S&P, Moody’s, Fitch)
CCC+, B3, B- BB-, Ba3, BB
BB+, Baa3,
BBB-
BBB-, Baa3,
BBB-
-
JCI Index (IHSG) 256 1,111 5,296 5,974 -
JCI year-to-date
Performance
-36.2% -59.5% +15.4% +12.8% -
Market Cap (USD bn) 22 98 449 485 -
Market Cap (IDR tn) 177 1,077 5,850 6,611 -
Source: IMF WEO, Bloomberg, DJPPR, BI

4. 4
Indonesia Financial Industry Development
25 years of capital market
1992 2017
Banking Assets
Indonesia
Rp178.4 tn
Rp7,028 tn
(Aug 2017)
39x
Market Capitalization
Indonesia
Rp24.4 tn
Rp6,611tn
(30-Oct-2017)
270x
ASEAN Capital Market Indices 30 Oct 2017
Indonesia 274.24 5,974.08 2080%
Thailand 893.42 1,719.71 92%
Malaysia 643.96 1,748.35 171%
Singapura 1524.40 3,375.97 121%

5. 5
Aset Perbankan dan Pasar Modal
Asset Bank; 7.029
Market Cap Pasar
Modal; 6.426
DPK Bank Umum;
5.053
Aug-16 Nov-16 Feb-17 May-17 Aug-17
dalam Rp miliar
Market Cap
Pasar Modal
30-Oct-2017
Rp6.611 tn

6. 6
Kredit Disalurkan
Source: Bank Indonesia
Aset Perbankan
(Rp tn)
LDR (%)
Kredit Disalurkan
(Rp tn)
Selisi Tahun
Sebelumnya
2004 1.272 50 559
2005 1.470 60 695 136
2006 1.694 62 792 97
2007 1.987 66 1.002 210
2008 2.311 75 1.307 305
2009 2.534 73 1.437 130
2010 3.009 75 1.765 328
2011 3.653 79 2.216 451
2012 4.263 84 2.725 509
2013 4.954 90 3.319 594
2014 5.615 89 3.706 387
2015 6.133 92 4.092 386
2016 6.730 91 4.413 321
2017 7.029 89 4.527 114

7. 7
Capital Market Highlights – 27 Oct 2017
JCI
Avg Daily Trade
(IDR tn)
Avg Daily
No. of Trade
(’000)
Market Cap
(IDR tn)
Frequency
472.056
8-Feb-2017
Daily
Active Investor
42.126
8-Feb-2017
IHSG
6,025.434
25-Oct-2017
Market Cap
IDR6,666 tn
25-Oct-2017
Trade Value
IDR189 T
11-Nov-2016
Highest
Record

8. -
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
J-92 J-93 J-94 J-95 J-96 J-97 J-98 J-99 J-00 J-01 J-02 J-03 J-04 J-05 J-06 J-07 J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 J-17 J-18
Capital Market Milestones
02-Jan-2013
Extending
Trading Hours
4,254.816
Des-2012
Establishment of
SIPF
4,290.796
Jan-2012
Establishme
nt
of OJK
3,809.140
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
Scripless 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 of SSX into
Bursa Paralel
Indonesia
509.532
22-May-1995
Automated
Trading (JATS)
461.389
13-Jul-1992
Privatization
of Jakarta
Stock
Exchange
321.544
8-Oct-2008
Suspend
Trading
1,451.669
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
Adjustment to
Lot Size & Tick Price
4,202.809
2013 2015 2016
02-May-2016
Adjustment
to Tick Size
4,808.319
2017
6-Feb-
2017
Margin
Trading
Regulation
Easing
5,395.995
25-Oct-2017
Highest Index
6,025.434
1992 – 27 October 2017
8

9. Dampak Politik thd IHSG: Minimal
IHSG, 2014 – Sept 2017
Minimum impact during
presidential race
Global market
turbulence
9

10. 10
10 Years Absolute Return 2006 – 2016 (10Y)
Source: Bloomberg
GLOBAL

11. The Positioning
11
IDX OFFERS
THE HIGHEST
MARKET RETURN
AMONG WORLD
MAJOR EXCHANGES
FOR LONG TERM INVESTORS

12. 12
Kinerja positif keuangan Perusahaan Tercatat
Q3 2017
Q32016
(IDR tn)
Q3 2017
(IDR tn)
%
Total Aset 4,638.74 5,147.18 10.96%
Total Equitas 953.11 1,050.49 10.22%
Pendapatan 651.74 713.16 9.42%
Laba Bersih 102.37 120.62 17.83%
Keseluruhan
Perusahaan
Tercatat
Perusahaan
yang termasuk
pada LQ-45
Q3 2016
(IDR tn)
Q3 2017
(IDR tn)
%
Total Aset 3,702.07 4,157.88 12.31%
Total Equitas 953.11 1,050.49 10.22%
Pendapatan 461.94 508.10 9.99%
Laba Bersih 93.11 109.78 17.90%
Source: IDX, FR Companies 78 of 559 companies

13. 13
Return on Equity among Exchange in ASEAN

14. 14
Dividend Payout Ratio among Exchange in ASEAN

15. 15
Fund Raised in Capital Market
27 Oct 2017

16. 16
Listing Update – 23 Oct 2017
2016 New Listing 2017 Pipeline 2017
Initial Public Offering
16
(Rp12.11 tn)
27
(Rp5.61 tn)
12
Bond / Sukuk Emission
84
(Rp114.66 tn)
75
(Rp116.02 tn)
12
Source: IDX

17. 17
ASEAN IPO market highlight
Jan – Sep 2017
26 19 17 10 4
0,32
1,32
2,26
1,71
0,45
-
Indonesia Thailand Singapore Malaysia Philippine Vietnam
IPO Fund Raised (IPO) (USD bn)

18. 18
Kontribusi Transaksi Investor Baru
Dec 2016 Sep 2017
SID Saham 514.248 600.489
Investor Baru 136.555 86.241
RNTH Total Rp6.77 tn
(tanpa crossing BBCA)
Rp7.27 tn
Kenaikan RNTH
dibanding tahun sebelumnya
Rp1.0 tn Rp0.5 tn
Kontribusi Investor Baru Rp627.4 bn (62,7%) Rp267.9 bn (54,2%)
Kontribusi Investor Baru
Individu
Rp133.4 bn (13,3%) Rp112.9 bn (22,6%)

19. 19
Key Issues
1. Stabilitas Pertumbuhan Ekonomi
2. Pertumbuhan Pasar Modal yang Agresif
3. “Resisten” Terhadap Goncangan Politik
4. Highest Market Return for Long Term
Investor
5. Potensi Penambahan Perusahaan Tercatat
6. Kekuatan Investor Domestik Individu
7. Credible Stock Exchange

20. 20
Banteng Wulung di 2018

21. Potential Issuers in IDX
21
392
Companies
In line to IDX
878State-owned
Enterprises &
Subsidiaries
52Foreign Resource
Base Listed
Outside Indonesia
Start-ups
+124
Companies with bank loans
more than USD74 Mn
(IDR1 Trillion)

22. ABS – Danareksa Indonesia Power PLN 1
Underlying: Receivables from Suralaya Power Plant
22
Receivables
on electricity supply at
Suralaya Power Plant ABS Class A
rating idAAA
total IDR3.688 tn
ABS Class B
non-rated
total Rp312 bio
• Oversubscribed 2.4x
• Highest Rating idAAA
• Return 8.25% pa
• Safe: underlying future
cash flow from
receivables on
electricity supplied to
PT PLN (Persero)
• Liquid: traded on IDX
Highlights
Investment
Manager
Custodian
Bank
Total Fund Raised
IDR4 tn

23. Distribution Network
Juni 2015
23
19
Representative
Offices
155
Investment Galleries
As of 11 Oktober 2017

24. Distribution Network
24
27 à 34
Representative
Offices
315 à 400
Investment Galleries
302 Universities
6
Go Public
Information Center
368
Investor Communities
As of 30 Oktober 2017
Live Daily from IDX
• Ch 100 Indovision
• Ch 398 First Media
• Ch 101 StarHub Singapore

25. 25
SAILING NORTH
MENAMBAH JUMLAH INVESTOR AKTIF
Optimalisasi Aktivasi Edukasi
Simplifikasi Pembukaan
Rekening Efek
TV Bursa
Yuk Nabung
Saham
34 KP +
300 GI
3000x
Seminar
Expo Reguler POJK 45/2015
“STRENGTHENING” THE BROKERS
Konsolidasi Broker +Infrastruktur
• Support Optimalisasi
Online Trading
• General Clearing
Member
• T3 àT2 Settlement
Klasifikasi Broker
(↑ MKBD)
+ Produk
• Margin (↑ Order) *
• Market Maker
• Derivatif
(+) Underwriter
(+) WPPE / APPE
(Peran Aktif TICMI)
MENINGKATKAN JUMLAH
PERUSAHAAN TERCATAT
TO EASE
• Efisiensi Proses Listing
(Digitalisasi)
• Pusat Informasi
Go Public
• Penawaran Umum
Lintas Batas
TO EDUCATE
Coaching Clinic Reguler
TO PERSUADE
• Privatisasi BUMN &
BUMD
• Startup, Creative
Industry, Resource
Based
TO FORCE
• Pinjam > Rp 1T Wajib
Listing
• SDA Listing
PENGUATAN KETAHANAN INDUSTRI PASAR MODAL INDONESIA
Real Time
MKBD
New Data Center
(+ Availability)
↑ Surveillance
(Penegakan Hukum)
CMPDP
TICMI sebagai
Pusat Inklusi
Financial
Stability
Penyempurnaan
Fraksi Harga
Securities
Financing
SIPF
Capital Market
Intelligence Center
THE BIGGEST IN
ASEAN 2020

26. FOKUS BEI 2018
• Memperbesar Kemampuan
Mobilisasi Dana
• Meningkatkan Likuiditas Pasar
(Volume, Value, Frequency)
26

27. • Stabilitas Ekonomi
• Suku Bunga Rendah
• Inflasi Terjaga
• GDP Terbesar di ASEAN
• Bonus Demografi
• Return Indeks Terbesar di DUNIA
• ROE Terbesar di ASEAN
• No Capital Gain Tax
• Kuatnya Investor Domestik
ANY REASON NOT TO IPO/INVEST?
27

28. 28
Terima Kasih