ASF - Capital Markets in Indonesia

8/13/2019 ASF - Capital Markets in Indonesia

1/15

Indonesia Market Reportby

Association of Indonesian Securities

CompaniesLily Widjaja, Chairperson

Osaka, September 2011


2/15

Highlights

Economic Performance

Capital Market Performance Regulatory Developments

Industry Developments & Challenges


3/15


4/15

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


4.79

6.75

Source : Indonesia Central Bank Source : BPS-

Statistic Indonesia


5/15

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


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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10/15

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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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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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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15/15

Documents

ASF - Capital Markets in Indonesia