Capital Market Update and IDX Initiatives Hasan Fawzi Director of - - PowerPoint PPT Presentation

Keynote Address

Capital Market Update and IDX Initiatives

Hasan Fawzi

Director 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

659

Equity 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
• f 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 product Outstanding

REIT (Real Estate Investment

Trust)

3 Rp16,0 t

ETF (Exchange Traded Fund)

35 Rp13,9 t

ABS (Asset Backed Securities), series

14 Rp8,7 t

DINFRA (Dana Investasi

Infrastruktur)

1 Rp1,0 t

Futures, contract

9 n/a Main Product Structured Product and Derivative Bonds

119

issuer

Rp440 t

corporate bonds outstanding

Rp2.699 t

government 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 22 20 13 1 5 Indonesia Malaysia Thailand Singapore Philippines Vietnam 42 22 15 11 3 Indonesia Malaysia Thailand Singapore Philippines Vietnam

2018 Q1Q3 2019

Source: EY Global IPO Trend Q4 2018 Source: EY Global IPO Trend Q3 2019

6

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 Volume

million shares

Average Daily Number of Trades

times

Average Daily Trading Turnover

IDR 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!

DISCLAIMER The facts and opinions stated or expressed in this publication are for information purposes only and are not necessarily and must not be relied upon as being those of the publisher or of the institutions for which the contributing authors work. Although every care has been taken to ensure the accuracy of the information contained within the publication, it should not be by any person relied upon as the basis for taking any action or making any decision. The Indonesia Stock Exchange cannot be held liable or otherwise responsible in anyway for any advice, action taken or decision made on the basis of the facts and opinions stated or expressed or stated within this publication

Lebih Baik!

Sehari Lebih Cepat, Selangkah Lebih Efisien