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/
Best of Indonesia Massive Economy Impressive Outlook Prospective Capital Market Indonesia ’s economy rank Equity Issuers 4 GDP Nominal 1 (GDP to PPP) 3 659 USD 1.04 Tn • This number is relatively smaller #4 than the total potential listed 1st 6th companies in Indonesia: #5 • ± 120 SOEs, ± 750 subsidiaries USD10.50 T in Asia Approximately in ASEAN • ± 26 millions SMEs equivalent to three #16 • ± 104,000 ltd./inc as bank-loan ASEAN countries USD5.42 T receivers • The 2 nd lowest among ASEAN-5 USD3.24 T countries 2018 2030 2050 Population 2 Investors 5 2.3 million+ Replacing 267 Mn Replacing Germany, Japan surpassing 1st 3rd Rusia and Brazil • Significantly lower than number of bank saving account ( ± 90 in Asia in ASEAN million accounts) Working age • Less than 1% of population (15-64 years): (relatively low among ASEAN ± 183,36 mn countries); 1 CEIC (2018) 4 Indonesia Stock Exchange latest data, Credit Burau, Bank Indonesia (Dec 2015), Ministry of SOE (2015), Economic Census (2016) 2 BPS Projection (2019) 5 Indonesia Stock Exchange (2019), World Bank Global Findex (2017) 2 3 PwC analysis for projections to 2050
Indonesia’s Capital Market at Glance As of October 2019 Main Product Stocks Structured Product and 659 Derivative listed companies Rp7.138 t Number of Outstanding market capitalization product REIT (Real Estate Investment 3 Rp16,0 t Trust) Bonds 35 Rp13,9 t ETF (Exchange Traded Fund) 119 ABS (Asset Backed 14 Rp8,7 t issuer Securities), series Rp440 t DINFRA (Dana Investasi 1 Rp1,0 t Infrastruktur) corporate bonds outstanding Rp2.699 t 9 n/a Futures, contract government bonds outstanding 3
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 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. 4. Tri-Party Repo 1. Regional Securities 5. Securities Financing Company 6. ETP for Bond Trading 2. T+3 to T+2 settlement Intermediaries System cycle 7. Sustainable Stock 3. Securities Lending & Exchange Borrowing 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. Demand 5
Indonesia is leading in number of IPO among ASEAN countries 57 2018 22 20 13 5 1 Source: EY Global IPO Trend Q4 2018 Indonesia Malaysia Thailand Singapore Philippines Vietnam 42 Q1Q3 22 15 2019 11 3 0 Indonesia Malaysia Thailand Singapore Philippines Vietnam Source: EY Global IPO Trend Q3 2019 6
Rapid Growth of Investors 2,220 Stock Only Account 37% Stock + Mutual Fund + Bond Account (in thousand investor) 1,619 44% 26% 1,123 S-INVEST + C-BEST Integration 894 1,035 106% 852 19% 630 14% 434 14% 364 536 321 281 2012 2013 2014 2015 2016 2017 2018 30-Sep-19 7
Local Investors Portion Increases, becoming Less Sensitives with Foreign Ownership 35.51% 36.21% 45.51% 47.83% Domestic 48.70% 49.16% 64.49% 63.79% 54.49% 52.17% Foreign 51.30% 50.84% 2014 2015 2016 2017 2018 Oct-19 Trading Activity Domestic 56.79% 59.42% 63.23% 63.37% 63.03% 68.56% Foreign 43.21% 40.58% 36.97% 36.77% 36.63% 31.44% 2014 2015 2016 2017 2018 Jan-Oct '19 8 Source: IDX, Custodian House (KSEI)
Daily trading activities reach the all time high As of October 2019 Average Daily Trading Volume Average Daily Trading Turnover million shares IDR billion 15,103 +9.38% p.a +13.77% p.a 11,953 9,368 8,500 10,568 7,603 7,498 7,827 6,238 6,006 5,764 5,928 4,537 5,503 5,484 4,284 2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019 Average Daily Number of Trades times 462,966 +17.96% p.a 386,804 312,485 212,635 221,583 264,127 121,712 153,686 2012 2013 2014 2015 2016 2017 2018 2019 Source: IDX 9
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! Lebih Baik! Sehari Lebih Cepat, Selangkah Lebih Efisien 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
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